PDF SolutionsPDFS +6.51%77 Pretax Margin % is 9.67% as of Mar. 2026, which is 7338% above its 10-year median of 0.13. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.59 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,823 Software companies, PDF Solutions ranks better than 54.55% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. PDF Solutions's Pre-Tax Income for the
three
months ended in Mar. 2026 was $5.8 Mil. PDF Solutions's Revenue for the
three
months ended in Mar. 2026 was $60.1 Mil. Therefore, PDF Solutions's pretax margin for the quarter that ended in Mar. 2026 was 9.67%.
The historical rank and industry rank for PDF Solutions's Pretax Margin % or its related term are showing as below:
PDFS'
s Pretax Margin % Range Over the Past 10 Years
Min: -20.51 Med: 0.13 Max: 12.06
Current: 5.19
PDFS's Pretax Margin % is ranked better than 54.55% of 2823
companies
in the Software industry
Industry Median: 3.53
vs PDFS: 5.19
PDF Solutions (NAS:PDFS) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
PDF Solutions Pretax Margin % Related Terms
PDF Solutions Pretax Margin % Historical Data
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The historical data trend for PDF Solutions's Pretax Margin % 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.
PDFS vs SPSC, EVCM, ALKT: Pretax Margin % Comparison
For the Software - Application subindustry, PDF Solutions's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
PDF Solutions Pretax Margin % vs Software Industry
For the Software industry and Technology sector, PDF Solutions's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where PDF Solutions's Pretax Margin % 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.
PDF Solutions (PDFS) has a Pretax Margin % of 9.67% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PDF Solutions and its competitors. This is 7338% above median its historical median of 0.13. According to the industry distribution chart, PDF Solutions ranks #1283 out of 2823 companies in the Software industry, placing it in the top 45.4%.
Is PDF Solutions' Pretax Margin % too high?
PDF Solutions' current Pretax Margin % of 9.67% is 7338% above median its 10-year median of 0.13. The Software industry median Pretax Margin % is 3.53. PDF Solutions' value of 9.67% is 173.9% above this industry median. Based on the distribution chart, PDF Solutions ranks #1283 out of 2823 companies in the Software industry, which is above the industry midpoint. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PDF Solutions' Pretax Margin % compare to SPSC and EVCM?
According to the Software industry distribution chart, PDF Solutions ranks #1283 out of 2823 companies for Pretax Margin %. This puts PDF Solutions in the upper half of its industry. The industry median Pretax Margin % is 3.53. PDF Solutions' value of 9.67% is 173.9% above this benchmark. While the company's 10-year median is 0.13 vs. the industry median of 3.53, PDF Solutions 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDF Solutions's current Pretax Margin % of 9.67% is 173.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PDF Solutions and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDF Solutions's current Pretax Margin % is 9.67%, which is 7338% above median its own 10-year median of 0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDF Solutions stock overvalued right now?
Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.59, compared to a current price of $67.75 — trading 62.9% above its estimated fair value. The current Pretax Margin % is 9.67%, which is 7338% above median its 10-year median of 0.13 and 173.9% above the Software industry median of 3.53. PDF Solutions' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For PDF Solutions (PDFS), the current Pretax Margin % is 9.67% 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 PDF Solutions (PDFS) Overvalued in 2026?
Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued.
The current stock price of $67.75 is trading 62.9% above its estimated GF Value™ of $41.59.
GuruFocus considers PDF Solutions to be Significantly Overvalued.
Key valuation signals for PDFS:
Pretax Margin %: 9.67% (7338% above median its 10-year median of 0.13)
GF Value™: $41.59 vs. price of $67.75 (62.9% above fair value)
Industry Position: 173.9% above the Software median (#1283 of 2823)
No single metric tells the full story. See the PDFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.
77GF Score
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