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NetScout SystemsNTCT +1.18%65 Return-on-Tangible-Asset is 8.49% as of Jun. 2026, which is 180% above its 10-year median of 3.03. GuruFocus rates NTCT with a GF Score™ of 65/100 and a GF Value™ of $23.87 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,897 Software companies, NetScout Systems ranks better than 80.91% 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. NetScout Systems's annualizedNet Income for the quarter that ended in Jun. 2026 was $87.3 Mil. NetScout Systems's average total tangible assets for the quarter that ended in Jun. 2026 was $1,028.6 Mil. Therefore, NetScout Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 8.49%.
The historical rank and industry rank for NetScout Systems's Return-on-Tangible-Asset or its related term are showing as below:
NTCT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -44.87 Med: 3.03 Max: 12.64
Current: 12.64
During the past 13 years, NetScout Systems's highest Return-on-Tangible-Asset was 12.64%. The lowest was -44.87%. And the median was 3.03%.
NTCT's Return-on-Tangible-Asset is ranked better than 80.91% of 2897
companies
in the Software industry
Industry Median: 2.17
vs NTCT: 12.64
NetScout Systems (NAS:NTCT) 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.
NetScout Systems Return-on-Tangible-Asset Related Terms
NetScout Systems Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for NetScout Systems'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.
NTCT vs EEFT, TDC, STNE: Return-on-Tangible-Asset Comparison
For the Software - Infrastructure subindustry, NetScout Systems'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.
NetScout Systems Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, NetScout Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where NetScout Systems'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 four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.49% mean?
NetScout Systems (NTCT) has a Return-on-Tangible-Asset of 8.49% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on NetScout Systems and its competitors. This is 180% above median its historical median of 3.03. According to the industry distribution chart, NetScout Systems ranks #553 out of 2897 companies in the Software industry, placing it in the top 19.1%.
Is NetScout Systems' Return-on-Tangible-Asset too high?
NetScout Systems' current Return-on-Tangible-Asset of 8.49% is 180% above median its 10-year median of 3.03. The Software industry median Return-on-Tangible-Asset is 2.17. NetScout Systems' value of 8.49% is 291.2% above this industry median. Based on the distribution chart, NetScout Systems ranks #553 out of 2897 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, NetScout Systems has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetScout Systems' Return-on-Tangible-Asset compare to EEFT and TDC?
According to the Software industry distribution chart, NetScout Systems ranks #553 out of 2897 companies for Return-on-Tangible-Asset. This places NetScout Systems in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.17. NetScout Systems' value of 8.49% is 291.2% above this benchmark. While the company's 10-year median is 3.03 vs. the industry median of 2.17, NetScout Systems 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 2.17, based on 2,897 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. NetScout Systems's current Return-on-Tangible-Asset of 8.49% is 291.2% 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-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 NetScout Systems and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetScout Systems's current Return-on-Tangible-Asset is 8.49%, which is 180% above median its own 10-year median of 3.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetScout Systems stock overvalued right now?
Based on GuruFocus' analysis, NetScout Systems (NTCT) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.87, compared to a current price of $38.47 — trading 61.2% above its estimated fair value. The current Return-on-Tangible-Asset is 8.49%, which is 180% above median its 10-year median of 3.03 and 291.2% above the Software industry median of 2.17. NetScout Systems' overall GF Score™ is 65/100 with 3 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 NetScout Systems (NTCT), the current Return-on-Tangible-Asset is 8.49% 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 NetScout Systems (NTCT) Overvalued in 2026?
Based on GuruFocus' analysis, NetScout Systems stock appears to be overvalued.
The current stock price of $38.47 is trading 61.2% above its estimated GF Value™ of $23.87.
GuruFocus considers NetScout Systems to be Significantly Overvalued.
Key valuation signals for NTCT:
Return-on-Tangible-Asset: 8.49% (180% above median its 10-year median of 3.03)
GF Value™: $23.87 vs. price of $38.47 (61.2% above fair value)
Industry Position: 291.2% above the Software median (#553 of 2897)
No single metric tells the full story. See the NTCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetScout Systems Inc is engaged in providing enterprise network observability, carrier service assurance, cybersecurity, and Distributed Denial-of-Service (DDoS), protection solutions. It bases its solutions on proprietary adaptive service intelligence technology, which helps customers monitor and identify performance issues and provides insight into network-based security threats. These solutions also deliver real-time and historical information, which provides insight to restore service and understand the quality of user experience. The company derives revenue from the sale of network management tools and security solutions. Its geographical regions include USA, which derives maximum revenue, Europe, Asia, and Rest of the World.
65GF Score
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