Check Point Software TechnologiesCHKP -0.05%82 Return-on-Tangible-Equity is 111.60% as of Mar. 2026, which is 215% above its 10-year median of 35.47. GuruFocus rates CHKP with a GF Score™ of 82/100 and a GF Value™ of $204.96 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,466 Software companies, Check Point Software Technologies ranks better than 88.69% on this metric.
The historical rank and industry rank for Check Point Software Technologies's Return-on-Tangible-Equity or its related term are showing as below:
CHKP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.09 Med: 35.47 Max: 127.65
Current: 123.55
During the past 13 years, Check Point Software Technologies's highest Return-on-Tangible-Equity was 127.65%. The lowest was 27.09%. And the median was 35.47%.
CHKP's Return-on-Tangible-Equity is ranked better than 88.69% of 2466
companies
in the Software industry
Industry Median: 8.67
vs CHKP: 123.55
Check Point Software Technologies (NAS:CHKP) 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.
Check Point Software Technologies Return-on-Tangible-Equity Related Terms
Check Point Software Technologies Return-on-Tangible-Equity Historical Data
* 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.
Check Point Software Technologies Return-on-Tangible-Equity Chart
CHKP vs NTNX, DOCN, GEN: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Check Point Software Technologies'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.
Check Point Software Technologies Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Check Point Software Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Check Point Software Technologies'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 111.60% mean?
Check Point Software Technologies (CHKP) has a Return-on-Tangible-Equity of 111.60% 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 Check Point Software Technologies and its competitors. This is 215% above median its historical median of 35.47. Over the past decade, Check Point Software Technologies' Return-on-Tangible-Equity has ranged from 27.09 to 127.65. According to the industry distribution chart, Check Point Software Technologies ranks #279 out of 2466 companies in the Software industry, placing it in the top 11.3%.
Is Check Point Software Technologies' Return-on-Tangible-Equity too high?
Check Point Software Technologies' current Return-on-Tangible-Equity of 111.60% is 215% above median its 10-year median of 35.47. Over the past 10 years, this metric has ranged from a low of 27.09 to a high of 127.65. The Software industry median Return-on-Tangible-Equity is 8.67. Check Point Software Technologies' value of 111.60% is 1187.2% above this industry median. Based on the distribution chart, Check Point Software Technologies ranks #279 out of 2466 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Check Point Software Technologies has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Check Point Software Technologies' Return-on-Tangible-Equity compare to NTNX and DOCN?
According to the Software industry distribution chart, Check Point Software Technologies ranks #279 out of 2466 companies for Return-on-Tangible-Equity. This places Check Point Software Technologies in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.67. Check Point Software Technologies' value of 111.60% is 1187.2% above this benchmark. Historically, Check Point Software Technologies' own Return-on-Tangible-Equity has ranged from 27.09 to 127.65 over the past decade. While the company's 10-year median is 35.47 vs. the industry median of 8.67, Check Point Software Technologies 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 8.67, based on 2,466 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. Check Point Software Technologies's current Return-on-Tangible-Equity of 111.60% is 1187.2% 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 Check Point Software Technologies and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Check Point Software Technologies's current Return-on-Tangible-Equity is 111.60%, which is 215% above median its own 10-year median of 35.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Check Point Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Check Point Software Technologies (CHKP) is currently considered Significantly Undervalued. The stock's GF Value™ is $204.96, compared to a current price of $138.75 — trading 32.3% below its estimated fair value. The current Return-on-Tangible-Equity is 111.60%, which is 215% above median its 10-year median of 35.47 and 1187.2% above the Software industry median of 8.67. Check Point Software Technologies' overall GF Score™ is 82/100 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 Check Point Software Technologies (CHKP), the current Return-on-Tangible-Equity is 111.60% 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 Check Point Software Technologies (CHKP) Overvalued in 2026?
Based on GuruFocus' analysis, Check Point Software Technologies stock appears to be undervalued.
The current stock price of $138.75 is trading 32.3% below its estimated GF Value™ of $204.96.
GuruFocus considers Check Point Software Technologies to be Significantly Undervalued.
Key valuation signals for CHKP:
Return-on-Tangible-Equity: 111.60% (215% above median its 10-year median of 35.47)
GF Value™: $204.96 vs. price of $138.75 (32.3% below fair value)
Industry Position: 1187.2% above the Software median (#279 of 2466)
No single metric tells the full story. See the CHKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Check Point Software Technologies Business Description
Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.
82GF Score
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