Bytes Technology GroupBYITY -7.06%66 Return-on-Tangible-Equity is 134.06% as of Feb. 2026, which is 5% below its 10-year median of 140.70. GuruFocus rates BYITY with a GF Scoreâ„¢ of 66/100 and a GF Valueâ„¢ of $14.00 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,472 Software companies, Bytes Technology Group ranks better than 88.83% 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. Bytes Technology Group's annualized net income for the quarter that ended in Feb. 2026 was $60.5 Mil. Bytes Technology Group's average shareholder tangible equity for the quarter that ended in Feb. 2026 was $45.1 Mil. Therefore, Bytes Technology Group's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 134.06%.
The historical rank and industry rank for Bytes Technology Group's Return-on-Tangible-Equity or its related term are showing as below:
BYITY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 114.97 Med: 140.7 Max: 327.22
Current: 126.87
During the past 9 years, Bytes Technology Group's highest Return-on-Tangible-Equity was 327.22%. The lowest was 114.97%. And the median was 140.70%.
BYITY's Return-on-Tangible-Equity is ranked better than 88.83% of 2472
companies
in the Software industry
Industry Median: 8.76
vs BYITY: 126.87
Bytes Technology Group (OTCPK:BYITY) 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.
Bytes Technology Group Return-on-Tangible-Equity Related Terms
Bytes Technology Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Bytes Technology 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.
Bytes Technology Group Return-on-Tangible-Equity Chart
BYITY vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Bytes Technology 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.
Bytes Technology Group Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Bytes Technology Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bytes Technology 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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 134.06% mean?
Bytes Technology Group (BYITY) has a Return-on-Tangible-Equity of 134.06% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Bytes Technology Group and its competitors. This is near median its historical median of 140.70. Over the past decade, Bytes Technology Group's Return-on-Tangible-Equity has ranged from 114.97 to 327.22. According to the industry distribution chart, Bytes Technology Group ranks #276 out of 2472 companies in the Software industry, placing it in the top 11.2%.
Is Bytes Technology Group's Return-on-Tangible-Equity too high?
Bytes Technology Group's current Return-on-Tangible-Equity of 134.06% is near median its 10-year median of 140.70. Over the past 10 years, this metric has ranged from a low of 114.97 to a high of 327.22. The Software industry median Return-on-Tangible-Equity is 8.76. Bytes Technology Group's value of 134.06% is 1430.4% above this industry median. Based on the distribution chart, Bytes Technology Group ranks #276 out of 2472 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Bytes Technology Group has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bytes Technology Group's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Bytes Technology Group ranks #276 out of 2472 companies for Return-on-Tangible-Equity. This places Bytes Technology Group in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.76. Bytes Technology Group's value of 134.06% is 1430.4% above this benchmark. Historically, Bytes Technology Group's own Return-on-Tangible-Equity has ranged from 114.97 to 327.22 over the past decade. While the company's 10-year median is 140.70 vs. the industry median of 8.76, Bytes Technology Group 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 8.76, based on 2,472 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. Bytes Technology Group's current Return-on-Tangible-Equity of 134.06% is 1430.4% 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 Bytes Technology Group and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bytes Technology Group's current Return-on-Tangible-Equity is 134.06%, which is near median its own 10-year median of 140.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bytes Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Bytes Technology Group (BYITY) is currently considered Modestly Undervalued. The stock's GF Value™ is $14.00, compared to a current price of $9.88 — trading 29.4% below its estimated fair value. The current Return-on-Tangible-Equity is 134.06%, which is near median its 10-year median of 140.70 and 1430.4% above the Software industry median of 8.76. Bytes Technology Group's overall GF Score™ is 66/100 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 Bytes Technology Group (BYITY), the current Return-on-Tangible-Equity is 134.06% as of Feb. 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 Bytes Technology Group (BYITY) Overvalued in 2026?
Based on GuruFocus' analysis, Bytes Technology Group stock appears to be undervalued.
The current stock price of $9.88 is trading 29.4% below its estimated GF Value™ of $14.00.
GuruFocus considers Bytes Technology Group to be Modestly Undervalued.
Key valuation signals for BYITY:
Return-on-Tangible-Equity: 134.06% (near median its 10-year median of 140.70)
GF Value™: $14.00 vs. price of $9.88 (29.4% below fair value)
Industry Position: 1430.4% above the Software median (#276 of 2472)
No single metric tells the full story. See the BYITY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bytes Technology Group PLC is one of the UK's heading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption and management across software services, including in the areas of security and cloud. The company has only one reportable segment. The company's products are Software, Hardware, Services internal, and Services external. The company has presence in United Kingdom, Europe, Rest of world. The company generates majority of revenue from United Kingdom.
66GF Score
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