Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Ericsson Nikola Tesla DDZAG:ERNT 77 Return-on-Tangible-Equity is 28.62% as of Jun. 2026, which is 8% below its 10-year median of 31.26. GuruFocus rates ZAG:ERNT with a GF Score™ of 77/100 and a GF Value™ of €180.39 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 326 Telecommunication Services companies, Ericsson Nikola Tesla DD ranks better than 61.35% 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. Ericsson Nikola Tesla DD's annualized net income for the quarter that ended in Jun. 2026 was €19.4 Mil. Ericsson Nikola Tesla DD's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €67.6 Mil. Therefore, Ericsson Nikola Tesla DD's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 28.62%.
The historical rank and industry rank for Ericsson Nikola Tesla DD's Return-on-Tangible-Equity or its related term are showing as below:
ZAG:ERNT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.45 Med: 31.26 Max: 48.04
Current: 26.5
During the past 13 years, Ericsson Nikola Tesla DD's highest Return-on-Tangible-Equity was 48.04%. The lowest was 22.45%. And the median was 31.26%.
ZAG:ERNT's Return-on-Tangible-Equity is ranked better than 61.35% of 326
companies
in the Telecommunication Services industry
Industry Median: 15.05
vs ZAG:ERNT: 26.50
Ericsson Nikola Tesla DD (ZAG:ERNT) 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.
Ericsson Nikola Tesla DD Return-on-Tangible-Equity Related Terms
Ericsson Nikola Tesla DD Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ericsson Nikola Tesla DD'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.
Ericsson Nikola Tesla DD Return-on-Tangible-Equity Chart
ZAG:ERNT vs VZ, TMUS, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Ericsson Nikola Tesla DD'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.
Ericsson Nikola Tesla DD Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ericsson Nikola Tesla DD's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ericsson Nikola Tesla DD'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.62% mean?
Ericsson Nikola Tesla DD (ZAG:ERNT) has a Return-on-Tangible-Equity of 28.62% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ericsson Nikola Tesla DD and its competitors. This is near median its historical median of 31.26. Over the past decade, Ericsson Nikola Tesla DD's Return-on-Tangible-Equity has ranged from 22.45 to 48.04. According to the industry distribution chart, Ericsson Nikola Tesla DD ranks #126 out of 326 companies in the Telecommunication Services industry, placing it in the top 38.7%.
Is Ericsson Nikola Tesla DD's Return-on-Tangible-Equity too high?
Ericsson Nikola Tesla DD's current Return-on-Tangible-Equity of 28.62% is near median its 10-year median of 31.26. Over the past 10 years, this metric has ranged from a low of 22.45 to a high of 48.04. The Telecommunication Services industry median Return-on-Tangible-Equity is 15.05. Ericsson Nikola Tesla DD's value of 28.62% is 90.2% above this industry median. Based on the distribution chart, Ericsson Nikola Tesla DD ranks #126 out of 326 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Ericsson Nikola Tesla DD has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ericsson Nikola Tesla DD's Return-on-Tangible-Equity compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Ericsson Nikola Tesla DD ranks #126 out of 326 companies for Return-on-Tangible-Equity. This puts Ericsson Nikola Tesla DD in the upper half of its industry. The industry median Return-on-Tangible-Equity is 15.05. Ericsson Nikola Tesla DD's value of 28.62% is 90.2% above this benchmark. Historically, Ericsson Nikola Tesla DD's own Return-on-Tangible-Equity has ranged from 22.45 to 48.04 over the past decade. While the company's 10-year median is 31.26 vs. the industry median of 15.05, Ericsson Nikola Tesla DD 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 15.05, 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. Ericsson Nikola Tesla DD's current Return-on-Tangible-Equity of 28.62% is 90.2% 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 Ericsson Nikola Tesla DD and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 15.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ericsson Nikola Tesla DD's current Return-on-Tangible-Equity is 28.62%, which is near median its own 10-year median of 31.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ericsson Nikola Tesla DD stock overvalued right now?
Based on GuruFocus' analysis, Ericsson Nikola Tesla DD (ZAG:ERNT) is currently considered Modestly Overvalued. The stock's GF Value™ is €180.39, compared to a current price of €203.00 — trading 12.5% above its estimated fair value. The current Return-on-Tangible-Equity is 28.62%, which is near median its 10-year median of 31.26 and 90.2% above the Telecommunication Services industry median of 15.05. Ericsson Nikola Tesla DD's overall GF Score™ is 77/100 with 4 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 Ericsson Nikola Tesla DD (ZAG:ERNT), the current Return-on-Tangible-Equity is 28.62% as of Jun. 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 Ericsson Nikola Tesla DD (ZAG:ERNT) Overvalued in 2026?
Based on GuruFocus' analysis, Ericsson Nikola Tesla DD stock appears to be overvalued.
The current stock price of €203.00 is trading 12.5% above its estimated GF Value™ of €180.39.
GuruFocus considers Ericsson Nikola Tesla DD to be Modestly Overvalued.
Key valuation signals for ZAG:ERNT:
Return-on-Tangible-Equity: 28.62% (near median its 10-year median of 31.26)
GF Value™: €180.39 vs. price of €203.00 (12.5% above fair value)
Industry Position: 90.2% above the Telecommunication Services median (#126 of 326)
No single metric tells the full story. See the ZAG:ERNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ericsson Nikola Tesla DD is a provider of communication products and services and ICT solutions related to healthcare, national and public safety, state administration, transport, utilities, and multimedia communication. The company's principal activities include research and development of telecommunications software and services, design, testing, and integration of total communications solutions, managed services, supply, and maintenance of communications solutions and ICT solutions, towards customers within the Ericsson Group, customers in the Republic of Croatia, and Bosnia and Herzegovina, and several customers in Central and Eastern Europe. The company operates in four segments Networks, Digital Services, Managed Services, and Others. It earns maximum revenue from Networks segment.
77GF Score
Get the complete analysis for ZAG:ERNT
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
ZAG:ERNT has been successfully added to your 
