Mercedes-Benz Group AGXSWX:MBG 62 Return-on-Tangible-Equity is 7.67% as of Mar. 2026, which is 54% below its 10-year median of 16.80. GuruFocus rates XSWX:MBG with a GF Score™ of 62/100 and a GF Value™ of CHF52.97 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Mercedes-Benz Group AG ranks worse than 53.7% 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. Mercedes-Benz Group AG's annualized net income for the quarter that ended in Mar. 2026 was CHF5,163 Mil. Mercedes-Benz Group AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF67,311 Mil. Therefore, Mercedes-Benz Group AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.67%.
The historical rank and industry rank for Mercedes-Benz Group AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:MBG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.99 Med: 16.8 Max: 45.45
Current: 6.71
During the past 13 years, Mercedes-Benz Group AG's highest Return-on-Tangible-Equity was 45.45%. The lowest was 4.99%. And the median was 16.80%.
XSWX:MBG's Return-on-Tangible-Equity is ranked worse than 53.7% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs XSWX:MBG: 6.71
Mercedes-Benz Group AG (XSWX:MBG) 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.
Mercedes-Benz Group AG Return-on-Tangible-Equity Related Terms
Mercedes-Benz Group AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mercedes-Benz Group 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.
Mercedes-Benz Group AG Return-on-Tangible-Equity Chart
XSWX:MBG vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Mercedes-Benz Group 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.
Mercedes-Benz Group AG Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Mercedes-Benz Group AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mercedes-Benz Group 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 7.67% mean?
Mercedes-Benz Group AG (XSWX:MBG) has a Return-on-Tangible-Equity of 7.67% 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 Mercedes-Benz Group AG and its competitors. This is 54% below median its historical median of 16.80. Over the past decade, Mercedes-Benz Group AG's Return-on-Tangible-Equity has ranged from 4.99 to 45.45. According to the industry distribution chart, Mercedes-Benz Group AG ranks #690 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 53.7%.
Is Mercedes-Benz Group AG's Return-on-Tangible-Equity too high?
Mercedes-Benz Group AG's current Return-on-Tangible-Equity of 7.67% is 54% below median its 10-year median of 16.80. Over the past 10 years, this metric has ranged from a low of 4.99 to a high of 45.45. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Mercedes-Benz Group AG's value of 7.67% is 2.4% above this industry median. Based on the distribution chart, Mercedes-Benz Group AG ranks #690 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Mercedes-Benz Group AG has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mercedes-Benz Group AG's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Mercedes-Benz Group AG ranks #690 out of 1285 companies for Return-on-Tangible-Equity. This places Mercedes-Benz Group AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. Mercedes-Benz Group AG's value of 7.67% is 2.4% above this benchmark. Historically, Mercedes-Benz Group AG's own Return-on-Tangible-Equity has ranged from 4.99 to 45.45 over the past decade. While the company's 10-year median is 16.80 vs. the industry median of 7.49, Mercedes-Benz Group AG 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 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. Mercedes-Benz Group AG's current Return-on-Tangible-Equity of 7.67% is 2.4% 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 Mercedes-Benz Group AG 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. Mercedes-Benz Group AG's current Return-on-Tangible-Equity is 7.67%, which is 54% below median its own 10-year median of 16.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercedes-Benz Group AG stock overvalued right now?
Based on GuruFocus' analysis, Mercedes-Benz Group AG (XSWX:MBG) is currently considered Possible Value Trap. The stock's GF Value™ is CHF52.97, compared to a current price of CHF40.87 — trading 22.9% below its estimated fair value. The current Return-on-Tangible-Equity is 7.67%, which is 54% below median its 10-year median of 16.80 and 2.4% above the Vehicles & Parts industry median of 7.49. Mercedes-Benz Group AG's overall GF Score™ is 62/100 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 Mercedes-Benz Group AG (XSWX:MBG), the current Return-on-Tangible-Equity is 7.67% 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 Mercedes-Benz Group AG (XSWX:MBG) Overvalued in 2026?
Based on GuruFocus' analysis, Mercedes-Benz Group AG stock appears to be undervalued.
The current stock price of CHF40.87 is trading 22.9% below its estimated GF Value™ of CHF52.97.
GuruFocus considers Mercedes-Benz Group AG to be Possible Value Trap.
Key valuation signals for XSWX:MBG:
Return-on-Tangible-Equity: 7.67% (54% below median its 10-year median of 16.80)
GF Value™: CHF52.97 vs. price of CHF40.87 (22.9% below fair value)
Industry Position: 2.4% above the Vehicles & Parts median (#690 of 1285)
No single metric tells the full story. See the XSWX:MBG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercedes-Benz Group is a premium automotive original equipment manufacturer, selling around 2 million passenger cars, including its Chinese joint venture, and just under 400,000 vans per year. The company's financial profile improved significantly following the spinoff of Daimler Truck in 2021. Unlike most automotive OEMs, Mercedes operates under its brand alone. In 2025, 15% of its passenger cars sold were top end (G Class, Maybach, AMG, S Class), 58% were core (C and E Class), and 27% entry (A and B Class). In volume terms, Asia and Europe are Mercedes' largest markets, representing 41% and 36% of 2025 vehicle sales, respectively, followed by North America at 16%.
62GF Score
Get the complete analysis for XSWX:MBG
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:MBG has been successfully added to your 
