BILL HoldingsBILL +6.41%71 Return-on-Tangible-Equity is 4.18% as of Mar. 2026. GuruFocus rates BILL with a GF Score™ of 71/100 and a GF Value™ of $66.03 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,471 Software companies, BILL Holdings ranks worse than 67.22% 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. BILL Holdings's annualized net income for the quarter that ended in Mar. 2026 was $51 Mil. BILL Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,223 Mil. Therefore, BILL Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.18%.
The historical rank and industry rank for BILL Holdings's Return-on-Tangible-Equity or its related term are showing as below:
BILL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -41.09 Med: -13.8 Max: 1.73
Current: 0.01
During the past 8 years, BILL Holdings's highest Return-on-Tangible-Equity was 1.73%. The lowest was -41.09%. And the median was -13.80%.
BILL's Return-on-Tangible-Equity is ranked worse than 67.22% of 2471
companies
in the Software industry
Industry Median: 8.77
vs BILL: 0.01
BILL Holdings (NYSE:BILL) 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.
BILL Holdings Return-on-Tangible-Equity Related Terms
BILL Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BILL Holdings'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.
BILL vs BULL, ADEA, MNDY: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, BILL Holdings'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.
BILL Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, BILL Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BILL Holdings'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 four times the quarterly (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 4.18% mean?
BILL Holdings (BILL) has a Return-on-Tangible-Equity of 4.18% 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 BILL Holdings and its competitors. According to the industry distribution chart, BILL Holdings ranks #1661 out of 2471 companies in the Software industry, placing it in the top 67.2%.
Is BILL Holdings' Return-on-Tangible-Equity too high?
BILL Holdings' current Return-on-Tangible-Equity is 4.18%. The Software industry median Return-on-Tangible-Equity is 8.77. BILL Holdings' value of 4.18% is 52.3% below this industry median. Based on the distribution chart, BILL Holdings ranks #1661 out of 2471 companies in the Software industry, which is below the industry midpoint. Overall, BILL Holdings has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does BILL Holdings' Return-on-Tangible-Equity compare to BULL and ADEA?
According to the Software industry distribution chart, BILL Holdings ranks #1661 out of 2471 companies for Return-on-Tangible-Equity. This places BILL Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.77. BILL Holdings' value of 4.18% is 52.3% below 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 8.77, based on 2,471 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. BILL Holdings's current Return-on-Tangible-Equity of 4.18% is 52.3% below 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 BILL Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BILL Holdings's current Return-on-Tangible-Equity is 4.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BILL Holdings stock overvalued right now?
Based on GuruFocus' analysis, BILL Holdings (BILL) is currently considered Possible Value Trap. The stock's GF Value™ is $66.03, compared to a current price of $35.52 — trading 46.2% below its estimated fair value. The current Return-on-Tangible-Equity is 4.18% and 52.3% below the Software industry median of 8.77. BILL Holdings' overall GF Score™ is 71/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For BILL Holdings (BILL), the current Return-on-Tangible-Equity is 4.18% 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 BILL Holdings (BILL) Overvalued in 2026?
Based on GuruFocus' analysis, BILL Holdings stock appears to be undervalued.
The current stock price of $35.52 is trading 46.2% below its estimated GF Value™ of $66.03.
GuruFocus considers BILL Holdings to be Possible Value Trap.
Key valuation signals for BILL:
Return-on-Tangible-Equity: 4.18%
GF Value™: $66.03 vs. price of $35.52 (46.2% below fair value)
Industry Position: 52.3% below the Software median (#1661 of 2471)
No single metric tells the full story. See the BILL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BILL Holdings Inc is a provider of software-as-a-service, cloud-based payments and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers or customers to do business, eliminate expense reports, manage cash flows and improve back office efficiency. Initial Public Offering and Follow-on Offering.
71GF Score
Get the complete analysis for BILL
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
BILL has been successfully added to your 
