Roche Holding AGXSWX:RO -0.47%77 Return-on-Tangible-Equity is 193.03% as of Dec. 2025, which is 15% above its 10-year median of 167.45. GuruFocus rates XSWX:RO with a GF Score™ of 77/100 and a GF Value™ of CHF269.42 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 899 Drug Manufacturers companies, Roche Holding AG ranks better than 94.1% 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. Roche Holding AG's annualized net income for the quarter that ended in Dec. 2025 was CHF10,940 Mil. Roche Holding AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF5,668 Mil. Therefore, Roche Holding AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 193.03%.
The historical rank and industry rank for Roche Holding AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:RO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 106.77 Med: 167.45 Max: 274.5
Current: 215.59
During the past 13 years, Roche Holding AG's highest Return-on-Tangible-Equity was 274.50%. The lowest was 106.77%. And the median was 167.45%.
XSWX:RO's Return-on-Tangible-Equity is ranked better than 94.1% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.68
vs XSWX:RO: 215.59
Roche Holding AG (XSWX:RO) 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.
Roche Holding AG Return-on-Tangible-Equity Related Terms
Roche Holding AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Roche Holding 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.
XSWX:RO vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Roche Holding 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.
Roche Holding AG Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Roche Holding 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 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 193.03% mean?
Roche Holding AG (XSWX:RO) has a Return-on-Tangible-Equity of 193.03% 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 Roche Holding AG and its competitors. This is 15% above median its historical median of 167.45. Over the past decade, Roche Holding AG's Return-on-Tangible-Equity has ranged from 106.77 to 274.50. According to the industry distribution chart, Roche Holding AG ranks #53 out of 899 companies in the Drug Manufacturers industry, placing it in the top 5.9%.
Is Roche Holding AG's Return-on-Tangible-Equity too high?
Roche Holding AG's current Return-on-Tangible-Equity of 193.03% is 15% above median its 10-year median of 167.45. Over the past 10 years, this metric has ranged from a low of 106.77 to a high of 274.50. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.68. Roche Holding AG's value of 193.03% is 2413.4% above this industry median. Based on the distribution chart, Roche Holding AG ranks #53 out of 899 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Roche Holding AG has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roche Holding AG's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Roche Holding AG ranks #53 out of 899 companies for Return-on-Tangible-Equity. This places Roche Holding AG in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.68. Roche Holding AG's value of 193.03% is 2413.4% above this benchmark. Historically, Roche Holding AG's own Return-on-Tangible-Equity has ranged from 106.77 to 274.50 over the past decade. While the company's 10-year median is 167.45 vs. the industry median of 7.68, Roche Holding 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.68, based on 899 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. Roche Holding AG's current Return-on-Tangible-Equity of 193.03% is 2413.4% 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 Roche Holding AG and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roche Holding AG's current Return-on-Tangible-Equity is 193.03%, which is 15% above median its own 10-year median of 167.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roche Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Roche Holding AG (XSWX:RO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF269.42, compared to a current price of CHF342.00 — trading 26.9% above its estimated fair value. The current Return-on-Tangible-Equity is 193.03%, which is 15% above median its 10-year median of 167.45 and 2413.4% above the Drug Manufacturers industry median of 7.68. Roche Holding AG's overall GF Score™ is 77/100 with 7 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 Roche Holding AG (XSWX:RO), the current Return-on-Tangible-Equity is 193.03% 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 Roche Holding AG (XSWX:RO) Overvalued in 2026?
Based on GuruFocus' analysis, Roche Holding AG stock appears to be overvalued.
The current stock price of CHF342.00 is trading 26.9% above its estimated GF Value™ of CHF269.42.
GuruFocus considers Roche Holding AG to be Modestly Overvalued.
Key valuation signals for XSWX:RO:
Return-on-Tangible-Equity: 193.03% (15% above median its 10-year median of 167.45)
GF Value™: CHF269.42 vs. price of CHF342.00 (26.9% above fair value)
Industry Position: 2413.4% above the Drug Manufacturers median (#53 of 899)
No single metric tells the full story. See the XSWX:RO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's bestselling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 40% of pharmaceutical sales, and centralized and point-of-care diagnostics for two-thirds of diagnostic-related sales.
77GF Score
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