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Ermenegildo Zegna NVZGN -1.14%83 Return-on-Tangible-Equity is 27.57% as of Dec. 2025, which is 44% above its 10-year median of 19.10. GuruFocus rates ZGN with a GF Score™ of 83/100 and a GF Value™ of $11.27 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,013 Manufacturing - Apparel & Accessories companies, Ermenegildo Zegna NV ranks better than 91.61% 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. Ermenegildo Zegna NV's annualized net income for the quarter that ended in Dec. 2025 was $130 Mil. Ermenegildo Zegna NV's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $471 Mil. Therefore, Ermenegildo Zegna NV's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 27.57%.
The historical rank and industry rank for Ermenegildo Zegna NV's Return-on-Tangible-Equity or its related term are showing as below:
ZGN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -66.95 Med: 19.1 Max: 50.15
Current: 27.33
During the past 8 years, Ermenegildo Zegna NV's highest Return-on-Tangible-Equity was 50.15%. The lowest was -66.95%. And the median was 19.10%.
ZGN's Return-on-Tangible-Equity is ranked better than 91.61% of 1013
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.43
vs ZGN: 27.33
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.
Ermenegildo Zegna NV Return-on-Tangible-Equity Related Terms
Ermenegildo Zegna NV Return-on-Tangible-Equity Historical Data
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The historical data trend for Ermenegildo Zegna NV'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.
ZGN vs PVH, COLM, UAA: Return-on-Tangible-Equity Comparison
For the Apparel Manufacturing subindustry, Ermenegildo Zegna NV'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.
Ermenegildo Zegna NV Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ermenegildo Zegna NV's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ermenegildo Zegna NV'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 27.57% mean?
Ermenegildo Zegna NV (ZGN) has a Return-on-Tangible-Equity of 27.57% 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 Ermenegildo Zegna NV and its competitors. This is 44% above median its historical median of 19.10. According to the industry distribution chart, Ermenegildo Zegna NV ranks #85 out of 1013 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 8.4%.
Is Ermenegildo Zegna NV's Return-on-Tangible-Equity too high?
Ermenegildo Zegna NV's current Return-on-Tangible-Equity of 27.57% is 44% above median its 10-year median of 19.10. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.43. Ermenegildo Zegna NV's value of 27.57% is 522.3% above this industry median. Based on the distribution chart, Ermenegildo Zegna NV ranks #85 out of 1013 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Ermenegildo Zegna NV has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ermenegildo Zegna NV's Return-on-Tangible-Equity compare to PVH and COLM?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ermenegildo Zegna NV ranks #85 out of 1013 companies for Return-on-Tangible-Equity. This places Ermenegildo Zegna NV in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.43. Ermenegildo Zegna NV's value of 27.57% is 522.3% above this benchmark. While the company's 10-year median is 19.10 vs. the industry median of 4.43, Ermenegildo Zegna NV 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 Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.43, based on 1,013 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. Ermenegildo Zegna NV's current Return-on-Tangible-Equity of 27.57% is 522.3% 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 Ermenegildo Zegna NV and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermenegildo Zegna NV's current Return-on-Tangible-Equity is 27.57%, which is 44% above median its own 10-year median of 19.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ermenegildo Zegna NV stock overvalued right now?
Based on GuruFocus' analysis, Ermenegildo Zegna NV (ZGN) is currently considered Modestly Overvalued. The stock's GF Value™ is $11.27, compared to a current price of $13.01 — trading 15.4% above its estimated fair value. The current Return-on-Tangible-Equity is 27.57%, which is 44% above median its 10-year median of 19.10 and 522.3% above the Manufacturing - Apparel & Accessories industry median of 4.43. Ermenegildo Zegna NV's overall GF Score™ is 83/100 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 Ermenegildo Zegna NV (ZGN), the current Return-on-Tangible-Equity is 27.57% 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 Ermenegildo Zegna NV (ZGN) Overvalued in 2026?
Based on GuruFocus' analysis, Ermenegildo Zegna NV stock appears to be overvalued.
The current stock price of $13.01 is trading 15.4% above its estimated GF Value™ of $11.27.
GuruFocus considers Ermenegildo Zegna NV to be Modestly Overvalued.
Key valuation signals for ZGN:
Return-on-Tangible-Equity: 27.57% (44% above median its 10-year median of 19.10)
GF Value™: $11.27 vs. price of $13.01 (15.4% above fair value)
Industry Position: 522.3% above the Manufacturing - Apparel & Accessories median (#85 of 1013)
No single metric tells the full story. See the ZGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ermenegildo Zegna NV designs creates, and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear, and accessories under the Thom Browne brand. The company operates in three segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile, and Third Party Brands); the Thom Browne segment, and the Tom Ford Fashion segment. The company generates the majority of revenue from the Zegna segment.
83GF Score
Get the complete analysis for ZGN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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