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ERP Soft SystemsBOM:530909 73 Return-on-Tangible-Equity is 0.96% as of Mar. 2026, which is 38% below its 10-year median of 1.54. GuruFocus rates BOM:530909 with a GF Score™ of 73/100 and a GF Value™ of ₹104.34 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,482 Software companies, ERP Soft Systems ranks worse than 66% 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. ERP Soft Systems's annualized net income for the quarter that ended in Mar. 2026 was ₹1.79 Mil. ERP Soft Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹187.39 Mil. Therefore, ERP Soft Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.96%.
The historical rank and industry rank for ERP Soft Systems's Return-on-Tangible-Equity or its related term are showing as below:
BOM:530909'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.87 Med: 1.54 Max: 8.22
Current: 0.9
During the past 13 years, ERP Soft Systems's highest Return-on-Tangible-Equity was 8.22%. The lowest was 0.87%. And the median was 1.54%.
BOM:530909's Return-on-Tangible-Equity is ranked worse than 66% of 2482
companies
in the Software industry
Industry Median: 9.155
vs BOM:530909: 0.90
ERP Soft Systems (BOM:530909) 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.
ERP Soft Systems Return-on-Tangible-Equity Related Terms
ERP Soft Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ERP Soft Systems'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.
BOM:530909 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, ERP Soft Systems'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.
ERP Soft Systems Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, ERP Soft Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ERP Soft Systems'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 0.96% mean?
ERP Soft Systems (BOM:530909) has a Return-on-Tangible-Equity of 0.96% 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 ERP Soft Systems and its competitors. This is 38% below median its historical median of 1.54. Over the past decade, ERP Soft Systems' Return-on-Tangible-Equity has ranged from 0.87 to 8.22. According to the industry distribution chart, ERP Soft Systems ranks #1638 out of 2482 companies in the Software industry, placing it in the top 66%.
Is ERP Soft Systems' Return-on-Tangible-Equity too high?
ERP Soft Systems' current Return-on-Tangible-Equity of 0.96% is 38% below median its 10-year median of 1.54. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 8.22. The Software industry median Return-on-Tangible-Equity is 9.16. ERP Soft Systems' value of 0.96% is 89.5% below this industry median. Based on the distribution chart, ERP Soft Systems ranks #1638 out of 2482 companies in the Software industry, which is below the industry midpoint. Overall, ERP Soft Systems has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ERP Soft Systems' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, ERP Soft Systems ranks #1638 out of 2482 companies for Return-on-Tangible-Equity. This places ERP Soft Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.16. ERP Soft Systems' value of 0.96% is 89.5% below this benchmark. Historically, ERP Soft Systems' own Return-on-Tangible-Equity has ranged from 0.87 to 8.22 over the past decade. While the company's 10-year median is 1.54 vs. the industry median of 9.16, ERP Soft Systems has consistently been below 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 9.16, based on 2,482 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. ERP Soft Systems's current Return-on-Tangible-Equity of 0.96% is 89.5% 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 ERP Soft Systems and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERP Soft Systems's current Return-on-Tangible-Equity is 0.96%, which is 38% below median its own 10-year median of 1.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ERP Soft Systems stock overvalued right now?
Based on GuruFocus' analysis, ERP Soft Systems (BOM:530909) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹104.34, compared to a current price of ₹68.73 — trading 34.1% below its estimated fair value. The current Return-on-Tangible-Equity is 0.96%, which is 38% below median its 10-year median of 1.54 and 89.5% below the Software industry median of 9.16. ERP Soft Systems' overall GF Score™ is 73/100 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 ERP Soft Systems (BOM:530909), the current Return-on-Tangible-Equity is 0.96% 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 ERP Soft Systems (BOM:530909) Overvalued in 2026?
Based on GuruFocus' analysis, ERP Soft Systems stock appears to be undervalued.
The current stock price of ₹68.73 is trading 34.1% below its estimated GF Value™ of ₹104.34.
GuruFocus considers ERP Soft Systems to be Significantly Undervalued.
Key valuation signals for BOM:530909:
Return-on-Tangible-Equity: 0.96% (38% below median its 10-year median of 1.54)
GF Value™: ₹104.34 vs. price of ₹68.73 (34.1% below fair value)
Industry Position: 89.5% below the Software median (#1638 of 2482)
No single metric tells the full story. See the BOM:530909 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ERP Soft Systems Ltd is engaged in computer programming, consultancy, and related activities. It provides services in web-based enterprise applications, enterprise portals, business intelligence, application migration, application maintenance/managed services, systems integration, technical audits, quality assurance and testing services, performance tuning, and technical architecture. It has one segment providing software support & maintenance services to the client. The company's services include BI, Analytics, GIS, and Cloud services.
73GF Score
Get the complete analysis for BOM:530909
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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