Deutsche Telekom AGXSWX:DTE 72 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates XSWX:DTE with a GF Score™ of 72/100 and a GF Value™ of CHF25.25 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 326 Telecommunication Services companies, Deutsche Telekom AG ranks better than 99.69% on this metric.
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. Deutsche Telekom AG's annualized net income for the quarter that ended in Mar. 2026 was CHF7,438 Mil. Deutsche Telekom AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF-71,374 Mil. Therefore, Deutsche Telekom AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Deutsche Telekom AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:DTE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
XSWX:DTE's Return-on-Tangible-Equity is ranked better than 99.69% of 326
companies
in the Telecommunication Services industry
Industry Median: 14.005
vs XSWX:DTE: Negative Tangible Equity
Deutsche Telekom AG (XSWX:DTE) 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.
Deutsche Telekom AG Return-on-Tangible-Equity Related Terms
Deutsche Telekom AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Deutsche Telekom AG'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.
Deutsche Telekom AG Return-on-Tangible-Equity Chart
XSWX:DTE vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Deutsche Telekom AG'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.
Deutsche Telekom AG Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Deutsche Telekom AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Deutsche Telekom AG'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 Negative Tangible Equity% mean?
Deutsche Telekom AG (XSWX:DTE) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Deutsche Telekom AG and its competitors. According to the industry distribution chart, Deutsche Telekom AG ranks #1 out of 326 companies in the Telecommunication Services industry, placing it in the top 0.3%.
Is Deutsche Telekom AG's Return-on-Tangible-Equity too high?
Deutsche Telekom AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Deutsche Telekom AG ranks #1 out of 326 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Deutsche Telekom AG has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Deutsche Telekom AG's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Deutsche Telekom AG ranks #1 out of 326 companies for Return-on-Tangible-Equity. This places Deutsche Telekom AG in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 14.01. 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 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. 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 Deutsche Telekom AG and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deutsche Telekom AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Telekom AG stock overvalued right now?
Based on GuruFocus' analysis, Deutsche Telekom AG (XSWX:DTE) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF25.25, compared to a current price of CHF22.56 — trading 10.7% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Deutsche Telekom AG's overall GF Score™ is 72/100 with 2 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 Deutsche Telekom AG (XSWX:DTE), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Deutsche Telekom AG (XSWX:DTE) Overvalued in 2026?
Based on GuruFocus' analysis, Deutsche Telekom AG stock appears to be undervalued.
The current stock price of CHF22.56 is trading 10.7% below its estimated GF Value™ of CHF25.25.
GuruFocus considers Deutsche Telekom AG to be Modestly Undervalued.
No single metric tells the full story. See the XSWX:DTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deutsche Telekom is Germany's incumbent telecom operator and remains the dominant player in mobile and fixed markets. It also owns a controlling stake in T-Mobile US—one of three primary wireless carriers in the United States—which merged with Sprint in 2020, consolidating the market from four to three operators. Aside from its two core markets, Deutsche Telekom operates in several Central European countries and holds an IT arm (Systems Solutions).
72GF Score
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