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. Beforepay Group's annualized net income for the quarter that ended in Dec. 2025 was A$8.43 Mil. Beforepay Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$37.40 Mil. Therefore, Beforepay Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 22.54%.
The historical rank and industry rank for Beforepay Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:B4P'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -66.91 Med: -4.32 Max: 22.72
Current: 22.72
During the past 5 years, Beforepay Group's highest Return-on-Tangible-Equity was 22.72%. The lowest was -66.91%. And the median was -4.32%.
ASX:B4P's Return-on-Tangible-Equity is ranked better than 70.07% of 2469
companies
in the Software industry
Industry Median: 8.62
vs ASX:B4P: 22.72
Beforepay Group (ASX:B4P) 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.
Beforepay Group Return-on-Tangible-Equity Related Terms
Beforepay Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Beforepay Group'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.
ASX:B4P vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Beforepay Group'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.
Beforepay Group Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Beforepay Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Beforepay Group'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 22.54% mean?
Beforepay Group (ASX:B4P) has a Return-on-Tangible-Equity of 22.54% 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 Beforepay Group and its competitors. According to the industry distribution chart, Beforepay Group ranks #739 out of 2469 companies in the Software industry, placing it in the top 29.9%.
Is Beforepay Group's Return-on-Tangible-Equity too high?
Beforepay Group's current Return-on-Tangible-Equity is 22.54%. The Software industry median Return-on-Tangible-Equity is 8.62. Beforepay Group's value of 22.54% is 161.5% above this industry median. Based on the distribution chart, Beforepay Group ranks #739 out of 2469 companies in the Software industry, which is above the industry midpoint. Overall, Beforepay Group has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Beforepay Group's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Beforepay Group ranks #739 out of 2469 companies for Return-on-Tangible-Equity. This puts Beforepay Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.62. Beforepay Group's value of 22.54% is 161.5% above this benchmark. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,469 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. Beforepay Group's current Return-on-Tangible-Equity of 22.54% is 161.5% 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 Beforepay Group and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beforepay Group's current Return-on-Tangible-Equity is 22.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beforepay Group stock overvalued right now?
Based on GuruFocus' analysis, Beforepay Group (ASX:B4P) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.53, compared to a current price of A$1.20 — trading 21.6% below its estimated fair value. The current Return-on-Tangible-Equity is 22.54% and 161.5% above the Software industry median of 8.62. Beforepay Group's overall GF Score™ is 61/100 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 Beforepay Group (ASX:B4P), the current Return-on-Tangible-Equity is 22.54% 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 Beforepay Group (ASX:B4P) Overvalued in 2026?
Based on GuruFocus' analysis, Beforepay Group stock appears to be undervalued.
The current stock price of A$1.20 is trading 21.6% below its estimated GF Value™ of A$1.53.
GuruFocus considers Beforepay Group to be Modestly Undervalued.
Key valuation signals for ASX:B4P:
Return-on-Tangible-Equity: 22.54%
GF Value™: A$1.53 vs. price of A$1.20 (21.6% below fair value)
Industry Position: 161.5% above the Software median (#739 of 2469)
No single metric tells the full story. See the ASX:B4P stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beforepay Group Ltd operates in the pay-on-demand industry. It offers an app that helps users access their Pay On-Demand, track their spending habits, and learn how to budget. The Group is organised into one operating segment, being the provision of finance to its customers by way of salary advances.
61GF Score
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