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. Toast's annualized net income for the quarter that ended in Mar. 2026 was R$2,636 Mil. Toast's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$10,322 Mil. Therefore, Toast's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.54%.
The historical rank and industry rank for Toast's Return-on-Tangible-Equity or its related term are showing as below:
BSP:TOST34'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -200 Med: -24.39 Max: 22.95
Current: 22.95
During the past 7 years, Toast's highest Return-on-Tangible-Equity was 22.95%. The lowest was -200.00%. And the median was -24.39%.
BSP:TOST34's Return-on-Tangible-Equity is ranked better than 70.05% of 2471
companies
in the Software industry
Industry Median: 8.77
vs BSP:TOST34: 22.95
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.
Toast Return-on-Tangible-Equity Related Terms
Toast Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Toast'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.
BSP:TOST34 vs AKAM, RBRK, GEN: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Toast'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.
Toast Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Toast's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Toast'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 25.54% mean?
Toast (BSP:TOST34) has a Return-on-Tangible-Equity of 25.54% 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 Toast and its competitors. According to the industry distribution chart, Toast ranks #740 out of 2471 companies in the Software industry, placing it in the top 29.9%.
Is Toast's Return-on-Tangible-Equity too high?
Toast's current Return-on-Tangible-Equity is 25.54%. The Software industry median Return-on-Tangible-Equity is 8.77. Toast's value of 25.54% is 191.2% above this industry median. Based on the distribution chart, Toast ranks #740 out of 2471 companies in the Software industry, which is above the industry midpoint. Overall, Toast has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Toast's Return-on-Tangible-Equity compare to AKAM and RBRK?
According to the Software industry distribution chart, Toast ranks #740 out of 2471 companies for Return-on-Tangible-Equity. This puts Toast in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.77. Toast's value of 25.54% is 191.2% 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 8.77, 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. Toast's current Return-on-Tangible-Equity of 25.54% is 191.2% 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-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 Toast 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. Toast's current Return-on-Tangible-Equity is 25.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toast stock overvalued right now?
Toast (BSP:TOST34) has a current Return-on-Tangible-Equity of 25.54%. The stock's GF Value™ is R$68.52, compared to a current price of R$46.20 — trading 32.6% below its estimated fair value. The current Return-on-Tangible-Equity is 25.54% and 191.2% above the Software industry median of 8.77. Toast's overall GF Score™ is 78/100 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 Toast (BSP:TOST34), the current Return-on-Tangible-Equity is 25.54% 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 Toast (BSP:TOST34) Overvalued in 2026?
Based on GuruFocus' analysis, Toast stock appears to be undervalued.
The current stock price of R$46.20 is trading 32.6% below its estimated GF Value™ of R$68.52.
Key valuation signals for BSP:TOST34:
Return-on-Tangible-Equity: 25.54%
GF Value™: R$68.52 vs. price of R$46.20 (32.6% below fair value)
Industry Position: 191.2% above the Software median (#740 of 2471)
No single metric tells the full story. See the BSP:TOST34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toast Inc is a cloud-based, all-in-one digital technology platform purpose-built for the restaurant community. The company provides a comprehensive platform of software-as-a-service (SaaS) products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. It serves as a restaurant operating system, connecting front of house and back of house operations across service models such as dine-in, takeout, and delivery. It operates through one reportable segment consisting of its SaaS products, financial technology solutions, integrated payments, hardware, and partner ecosystem.
78GF Score
Get the complete analysis for BSP:TOST34
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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