L'OrealXSWX:OR 99 Return-on-Tangible-Equity is 37.87% as of Dec. 2025, which is 14% above its 10-year median of 33.13. GuruFocus rates XSWX:OR with a GF Score™ of 99/100 and a GF Value™ of CHF366.59. The stock has 3 warning signs investors should review. Among 1,876 Consumer Packaged Goods companies, L'Oreal ranks better than 91.47% 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. L'Oreal's annualized net income for the quarter that ended in Dec. 2025 was CHF5,149 Mil. L'Oreal's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF13,599 Mil. Therefore, L'Oreal's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 37.87%.
The historical rank and industry rank for L'Oreal's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:OR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.42 Med: 33.13 Max: 54.69
Current: 41.56
During the past 13 years, L'Oreal's highest Return-on-Tangible-Equity was 54.69%. The lowest was 22.42%. And the median was 33.13%.
XSWX:OR's Return-on-Tangible-Equity is ranked better than 91.47% of 1876
companies
in the Consumer Packaged Goods industry
Industry Median: 7.715
vs XSWX:OR: 41.56
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.
L'Oreal Return-on-Tangible-Equity Related Terms
L'Oreal Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for L'Oreal'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:OR vs PG, CL, KVUE: Return-on-Tangible-Equity Comparison
For the Household & Personal Products subindustry, L'Oreal'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.
L'Oreal Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Oreal's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where L'Oreal'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 37.87% mean?
L'Oreal (XSWX:OR) has a Return-on-Tangible-Equity of 37.87% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on L'Oreal and its competitors. This is 14% above median its historical median of 33.13. Over the past decade, L'Oreal's Return-on-Tangible-Equity has ranged from 22.42 to 54.69. According to the industry distribution chart, L'Oreal ranks #160 out of 1876 companies in the Consumer Packaged Goods industry, placing it in the top 8.5%.
Is L'Oreal's Return-on-Tangible-Equity too high?
L'Oreal's current Return-on-Tangible-Equity of 37.87% is 14% above median its 10-year median of 33.13. Over the past 10 years, this metric has ranged from a low of 22.42 to a high of 54.69. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.72. L'Oreal's value of 37.87% is 390.9% above this industry median. Based on the distribution chart, L'Oreal ranks #160 out of 1876 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, L'Oreal has a GF Score™ of 99/100, reflecting its overall financial health beyond just this single metric.
How does L'Oreal's Return-on-Tangible-Equity compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, L'Oreal ranks #160 out of 1876 companies for Return-on-Tangible-Equity. This places L'Oreal in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.72. L'Oreal's value of 37.87% is 390.9% above this benchmark. Historically, L'Oreal's own Return-on-Tangible-Equity has ranged from 22.42 to 54.69 over the past decade. While the company's 10-year median is 33.13 vs. the industry median of 7.72, L'Oreal 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.72, based on 1,876 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. L'Oreal's current Return-on-Tangible-Equity of 37.87% is 390.9% 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 L'Oreal and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L'Oreal's current Return-on-Tangible-Equity is 37.87%, which is 14% above median its own 10-year median of 33.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L'Oreal stock overvalued right now?
L'Oreal (XSWX:OR) has a current Return-on-Tangible-Equity of 37.87%. The stock's GF Value™ is CHF366.59, compared to a current price of CHF328.25 — trading 10.5% below its estimated fair value. The current Return-on-Tangible-Equity is 37.87%, which is 14% above median its 10-year median of 33.13 and 390.9% above the Consumer Packaged Goods industry median of 7.72. L'Oreal's overall GF Score™ is 99/100 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 L'Oreal (XSWX:OR), the current Return-on-Tangible-Equity is 37.87% as of Dec. 2025. 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 L'Oreal (XSWX:OR) Overvalued in 2026?
Based on GuruFocus' analysis, L'Oreal stock appears to be undervalued.
The current stock price of CHF328.25 is trading 10.5% below its estimated GF Value™ of CHF366.59.
Key valuation signals for XSWX:OR:
Return-on-Tangible-Equity: 37.87% (14% above median its 10-year median of 33.13)
GF Value™: CHF366.59 vs. price of CHF328.25 (10.5% below fair value)
Industry Position: 390.9% above the Consumer Packaged Goods median (#160 of 1876)
No single metric tells the full story. See the XSWX:OR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L'Oréal is the largest beauty product maker in the world, with consumer products (37% of sales) and luxury beauty (35%) the major segments, followed by derma skin care (16%) and professional products (12%). The firm also has a diversified geographic footprint, generating 34% of sales in Europe, 27% from North America, 23% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oréal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancôme, Yves Saint Laurent, Maybelline, Kiehl's, L'Oréal Paris, Kerastase, CeraVe, Garnier, and Armani.
99GF Score
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