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AMTD DigitalHKD +1.26%63 Return-on-Tangible-Asset is 6.84% as of Oct. 2025, which is 3% below its 10-year median of 7.04. GuruFocus rates HKD with a GF Score™ of 63/100 and a GF Value™ of $4.79 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 2,893 Software companies, AMTD Digital ranks better than 70.79% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. AMTD Digital's annualizedNet Income for the quarter that ended in Oct. 2025 was $55.27 Mil. AMTD Digital's average total tangible assets for the quarter that ended in Oct. 2025 was $807.83 Mil. Therefore, AMTD Digital's annualized Return-on-Tangible-Asset for the quarter that ended in Oct. 2025 was 6.84%.
The historical rank and industry rank for AMTD Digital's Return-on-Tangible-Asset or its related term are showing as below:
HKD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.3 Med: 7.04 Max: 10.25
Current: 8.21
During the past 7 years, AMTD Digital's highest Return-on-Tangible-Asset was 10.25%. The lowest was 0.30%. And the median was 7.04%.
HKD's Return-on-Tangible-Asset is ranked better than 70.79% of 2893
companies
in the Software industry
Industry Median: 2.06
vs HKD: 8.21
AMTD Digital (NYSE:HKD) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
AMTD Digital Return-on-Tangible-Asset Related Terms
AMTD Digital Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for AMTD Digital's Return-on-Tangible-Asset 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.
HKD vs ALIT, OOMA, SMWB: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, AMTD Digital's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
AMTD Digital Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, AMTD Digital's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where AMTD Digital's Return-on-Tangible-Asset 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-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Oct. 2025) net income data.
What does a Return-on-Tangible-Asset of 6.84% mean?
AMTD Digital (HKD) has a Return-on-Tangible-Asset of 6.84% as of Oct. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on AMTD Digital and its competitors. This is near median its historical median of 7.04. Over the past decade, AMTD Digital's Return-on-Tangible-Asset has ranged from 0.30 to 10.25. According to the industry distribution chart, AMTD Digital ranks #845 out of 2893 companies in the Software industry, placing it in the top 29.2%.
Is AMTD Digital's Return-on-Tangible-Asset too high?
AMTD Digital's current Return-on-Tangible-Asset of 6.84% is near median its 10-year median of 7.04. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 10.25. The Software industry median Return-on-Tangible-Asset is 2.06. AMTD Digital's value of 6.84% is 232% above this industry median. Based on the distribution chart, AMTD Digital ranks #845 out of 2893 companies in the Software industry, which is above the industry midpoint. Overall, AMTD Digital has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AMTD Digital's Return-on-Tangible-Asset compare to ALIT and OOMA?
According to the Software industry distribution chart, AMTD Digital ranks #845 out of 2893 companies for Return-on-Tangible-Asset. This puts AMTD Digital in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.06. AMTD Digital's value of 6.84% is 232% above this benchmark. Historically, AMTD Digital's own Return-on-Tangible-Asset has ranged from 0.30 to 10.25 over the past decade. While the company's 10-year median is 7.04 vs. the industry median of 2.06, AMTD Digital 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-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.06, based on 2,893 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AMTD Digital's current Return-on-Tangible-Asset of 6.84% is 232% 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-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on AMTD Digital and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AMTD Digital's current Return-on-Tangible-Asset is 6.84%, which is near median its own 10-year median of 7.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AMTD Digital stock overvalued right now?
Based on GuruFocus' analysis, AMTD Digital (HKD) is currently considered Possible Value Trap. The stock's GF Value™ is $4.79, compared to a current price of $1.61 — trading 66.4% below its estimated fair value. The current Return-on-Tangible-Asset is 6.84%, which is near median its 10-year median of 7.04 and 232% above the Software industry median of 2.06. AMTD Digital's overall GF Score™ is 63/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For AMTD Digital (HKD), the current Return-on-Tangible-Asset is 6.84% as of Oct. 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 AMTD Digital (HKD) Overvalued in 2026?
Based on GuruFocus' analysis, AMTD Digital stock appears to be undervalued.
The current stock price of $1.61 is trading 66.4% below its estimated GF Value™ of $4.79.
GuruFocus considers AMTD Digital to be Possible Value Trap.
Key valuation signals for HKD:
Return-on-Tangible-Asset: 6.84% (near median its 10-year median of 7.04)
GF Value™: $4.79 vs. price of $1.61 (66.4% below fair value)
Industry Position: 232% above the Software median (#845 of 2893)
No single metric tells the full story. See the HKD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AMTD Digital Inc along with its subsidiaries, is mainly involved in the provision of digital solutions services. Its reportable segments are digital solutions services segment; hotel operations, hospitality and VIP services segment; media and entertainment services segment; and Strategic investments. The company generates maximum revenue from Digital solutions services segment, which provides its institutional and corporate clients with exclusive, paid access to enhance their investor communication, investor relations and corporate communication to potentially maximize their valuation, as well as providing digital solution services. Geographically, the company generates revenue from China, Hong Kong, Europe, Americas and Southeast Asia.
63GF Score
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