Technology OneASX:TNE +1.95%100 Return-on-Tangible-Equity is 57.35% as of Mar. 2026, which is 40% below its 10-year median of 95.58. GuruFocus rates ASX:TNE with a GF Score™ of 100/100 and a GF Value™ of A$30.14 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,467 Software companies, Technology One ranks better than 83.95% 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. Technology One's annualized net income for the quarter that ended in Mar. 2026 was A$133.6 Mil. Technology One's average shareholder tangible equity for the quarter that ended in Mar. 2026 was A$233.0 Mil. Therefore, Technology One's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 57.35%.
The historical rank and industry rank for Technology One's Return-on-Tangible-Equity or its related term are showing as below:
ASX:TNE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 41.71 Med: 95.58 Max: 201.52
Current: 54.75
During the past 13 years, Technology One's highest Return-on-Tangible-Equity was 201.52%. The lowest was 41.71%. And the median was 95.58%.
ASX:TNE's Return-on-Tangible-Equity is ranked better than 83.95% of 2467
companies
in the Software industry
Industry Median: 8.62
vs ASX:TNE: 54.75
Technology One (ASX:TNE) 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.
Technology One Return-on-Tangible-Equity Related Terms
Technology One Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Technology One'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:TNE vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Technology One'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.
Technology One Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Technology One's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Technology One'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 57.35% mean?
Technology One (ASX:TNE) has a Return-on-Tangible-Equity of 57.35% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Technology One and its competitors. This is 40% below median its historical median of 95.58. Over the past decade, Technology One's Return-on-Tangible-Equity has ranged from 41.71 to 201.52. According to the industry distribution chart, Technology One ranks #396 out of 2467 companies in the Software industry, placing it in the top 16.1%.
Is Technology One's Return-on-Tangible-Equity too high?
Technology One's current Return-on-Tangible-Equity of 57.35% is 40% below median its 10-year median of 95.58. Over the past 10 years, this metric has ranged from a low of 41.71 to a high of 201.52. The Software industry median Return-on-Tangible-Equity is 8.62. Technology One's value of 57.35% is 565.3% above this industry median. Based on the distribution chart, Technology One ranks #396 out of 2467 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Technology One has a GF Score™ of 100/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Technology One's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Technology One ranks #396 out of 2467 companies for Return-on-Tangible-Equity. This places Technology One in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.62. Technology One's value of 57.35% is 565.3% above this benchmark. Historically, Technology One's own Return-on-Tangible-Equity has ranged from 41.71 to 201.52 over the past decade. While the company's 10-year median is 95.58 vs. the industry median of 8.62, Technology One 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,467 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. Technology One's current Return-on-Tangible-Equity of 57.35% is 565.3% 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 Technology One 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. Technology One's current Return-on-Tangible-Equity is 57.35%, which is 40% below median its own 10-year median of 95.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Technology One stock overvalued right now?
Based on GuruFocus' analysis, Technology One (ASX:TNE) is currently considered Fairly Valued. The stock's GF Value™ is A$30.14, compared to a current price of A$30.89 — trading 2.5% above its estimated fair value. The current Return-on-Tangible-Equity is 57.35%, which is 40% below median its 10-year median of 95.58 and 565.3% above the Software industry median of 8.62. Technology One's overall GF Score™ is 100/100 with 1 warning sign 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 Technology One (ASX:TNE), the current Return-on-Tangible-Equity is 57.35% 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 Technology One (ASX:TNE) Overvalued in 2026?
Based on GuruFocus' analysis, Technology One stock appears to be overvalued.
The current stock price of A$30.89 is trading 2.5% above its estimated GF Value™ of A$30.14.
GuruFocus considers Technology One to be Fairly Valued.
Key valuation signals for ASX:TNE:
Return-on-Tangible-Equity: 57.35% (40% below median its 10-year median of 95.58)
GF Value™: A$30.14 vs. price of A$30.89 (2.5% above fair value)
Industry Position: 565.3% above the Software median (#396 of 2467)
No single metric tells the full story. See the ASX:TNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Technology One is a technology company providing enterprise resource planning software, primarily to governmental organizations, education institutions, and healthcare organizations in Australia, New Zealand, and the United Kingdom. Over the past three decades, Technology One has successfully carved out its niche, boasting dominant market shares in some of its key verticals, world-leading annual customer retention rates of over 99%, and a consistently growing number of products used per customer.
100GF Score
Get the complete analysis for ASX:TNE
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:TNE has been successfully added to your 
