Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Carvana Co's annualized net income for the quarter that ended in Mar. 2026 was CHF787 Mil. Carvana Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF2,790 Mil. Therefore, Carvana Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 28.22%.
The historical rank and industry rank for Carvana Co's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:CVNA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -160.85 Med: -49.91 Max: 61.04
Current: 57.88
During the past 12 years, Carvana Co's highest Return-on-Tangible-Equity was 61.04%. The lowest was -160.85%. And the median was -49.91%.
XSWX:CVNA's Return-on-Tangible-Equity is ranked better than 95.25% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs XSWX:CVNA: 57.88
Carvana Co (XSWX:CVNA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Carvana Co Return-on-Tangible-Equity Related Terms
Carvana Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Carvana Co's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:CVNA vs PAG, ALTB, LAD: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Carvana Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Carvana Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Carvana Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Carvana Co's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.22% mean?
Carvana Co (XSWX:CVNA) has a Return-on-Tangible-Equity of 28.22% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Carvana Co and its competitors. According to the industry distribution chart, Carvana Co ranks #61 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 4.7%.
Is Carvana Co's Return-on-Tangible-Equity too high?
Carvana Co's current Return-on-Tangible-Equity is 28.22%. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Carvana Co's value of 28.22% is 276.8% above this industry median. Based on the distribution chart, Carvana Co ranks #61 out of 1285 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Carvana Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Carvana Co's Return-on-Tangible-Equity compare to PAG and ALTB?
According to the Vehicles & Parts industry distribution chart, Carvana Co ranks #61 out of 1285 companies for Return-on-Tangible-Equity. This places Carvana Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.49. Carvana Co's value of 28.22% is 276.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carvana Co's current Return-on-Tangible-Equity of 28.22% is 276.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Carvana Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carvana Co's current Return-on-Tangible-Equity is 28.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carvana Co stock overvalued right now?
Carvana Co (XSWX:CVNA) has a current Return-on-Tangible-Equity of 28.22%. The stock's GF Value™ is CHF63.63, compared to a current price of CHF52.50 — trading 17.5% below its estimated fair value. The current Return-on-Tangible-Equity is 28.22% and 276.8% above the Vehicles & Parts industry median of 7.49. Carvana Co's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Carvana Co (XSWX:CVNA), the current Return-on-Tangible-Equity is 28.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Carvana Co (XSWX:CVNA) Overvalued in 2026?
Based on GuruFocus' analysis, Carvana Co stock appears to be undervalued.
The current stock price of CHF52.50 is trading 17.5% below its estimated GF Value™ of CHF63.63.
Key valuation signals for XSWX:CVNA:
Return-on-Tangible-Equity: 28.22%
GF Value™: CHF63.63 vs. price of CHF52.50 (17.5% below fair value)
Industry Position: 276.8% above the Vehicles & Parts median (#61 of 1285)
No single metric tells the full story. See the XSWX:CVNA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
73GF Score
Get the complete analysis for XSWX:CVNA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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