Alphabet(Google)XSWX:GOOGL +0.65%85 Return-on-Tangible-Equity is 62.73% as of Mar. 2026, which is 163% above its 10-year median of 23.83. GuruFocus rates XSWX:GOOGL with a GF Score™ of 85/100 and a GF Value™ of CHF186.53 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 490 Interactive Media companies, Alphabet(Google) ranks better than 86.53% 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. Alphabet(Google)'s annualized net income for the quarter that ended in Mar. 2026 was CHF197,071 Mil. Alphabet(Google)'s average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF314,160 Mil. Therefore, Alphabet(Google)'s annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 62.73%.
The historical rank and industry rank for Alphabet(Google)'s Return-on-Tangible-Equity or its related term are showing as below:
XSWX:GOOGL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.04 Med: 23.83 Max: 44.73
Current: 44.73
During the past 13 years, Alphabet(Google)'s highest Return-on-Tangible-Equity was 44.73%. The lowest was 10.04%. And the median was 23.83%.
XSWX:GOOGL's Return-on-Tangible-Equity is ranked better than 86.53% of 490
companies
in the Interactive Media industry
Industry Median: 5.865
vs XSWX:GOOGL: 44.73
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.
Alphabet(Google) Return-on-Tangible-Equity Related Terms
Alphabet(Google) Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alphabet(Google)'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:GOOGL vs META, SPOT, NBIS: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, Alphabet(Google)'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.
Alphabet(Google) Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alphabet(Google)'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 62.73% mean?
Alphabet(Google) (XSWX:GOOGL) has a Return-on-Tangible-Equity of 62.73% 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 Alphabet(Google) and its competitors. This is 163% above median its historical median of 23.83. Over the past decade, Alphabet(Google)'s Return-on-Tangible-Equity has ranged from 10.04 to 44.73. According to the industry distribution chart, Alphabet(Google) ranks #66 out of 490 companies in the Interactive Media industry, placing it in the top 13.5%.
Is Alphabet(Google)'s Return-on-Tangible-Equity too high?
Alphabet(Google)'s current Return-on-Tangible-Equity of 62.73% is 163% above median its 10-year median of 23.83. Over the past 10 years, this metric has ranged from a low of 10.04 to a high of 44.73. The Interactive Media industry median Return-on-Tangible-Equity is 5.87. Alphabet(Google)'s value of 62.73% is 969.6% above this industry median. Based on the distribution chart, Alphabet(Google) ranks #66 out of 490 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Alphabet(Google) has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alphabet(Google)'s Return-on-Tangible-Equity compare to META and SPOT?
According to the Interactive Media industry distribution chart, Alphabet(Google) ranks #66 out of 490 companies for Return-on-Tangible-Equity. This places Alphabet(Google) in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.87. Alphabet(Google)'s value of 62.73% is 969.6% above this benchmark. Historically, Alphabet(Google)'s own Return-on-Tangible-Equity has ranged from 10.04 to 44.73 over the past decade. While the company's 10-year median is 23.83 vs. the industry median of 5.87, Alphabet(Google) has consistently been above the industry average. 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 an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.87, based on 490 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. Alphabet(Google)'s current Return-on-Tangible-Equity of 62.73% is 969.6% 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 Alphabet(Google) and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alphabet(Google)'s current Return-on-Tangible-Equity is 62.73%, which is 163% above median its own 10-year median of 23.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alphabet(Google) stock overvalued right now?
Based on GuruFocus' analysis, Alphabet(Google) (XSWX:GOOGL) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF186.53, compared to a current price of CHF288.15 — trading 54.5% above its estimated fair value. The current Return-on-Tangible-Equity is 62.73%, which is 163% above median its 10-year median of 23.83 and 969.6% above the Interactive Media industry median of 5.87. Alphabet(Google)'s overall GF Score™ is 85/100 with 5 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 Alphabet(Google) (XSWX:GOOGL), the current Return-on-Tangible-Equity is 62.73% 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 Alphabet(Google) (XSWX:GOOGL) Overvalued in 2026?
Based on GuruFocus' analysis, Alphabet(Google) stock appears to be overvalued.
The current stock price of CHF288.15 is trading 54.5% above its estimated GF Value™ of CHF186.53.
GuruFocus considers Alphabet(Google) to be Significantly Overvalued.
Key valuation signals for XSWX:GOOGL:
Return-on-Tangible-Equity: 62.73% (163% above median its 10-year median of 23.83)
GF Value™: CHF186.53 vs. price of CHF288.15 (54.5% above fair value)
Industry Position: 969.6% above the Interactive Media median (#66 of 490)
No single metric tells the full story. See the XSWX:GOOGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV and YouTube Music, among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform accounts for roughly 10% of Alphabet's revenue. The firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) make up the rest.
85GF Score
Get the complete analysis for XSWX:GOOGL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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