eGainEGAN +2.90%67 Return-on-Tangible-Equity is 12.55% as of Mar. 2026, which is 41% below its 10-year median of 21.11. GuruFocus rates EGAN with a GF Score™ of 67/100 and a GF Value™ of $7.05 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,476 Software companies, eGain ranks better than 84.45% 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. eGain's annualized net income for the quarter that ended in Mar. 2026 was $9.66 Mil. eGain's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $76.99 Mil. Therefore, eGain's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.55%.
The historical rank and industry rank for eGain's Return-on-Tangible-Equity or its related term are showing as below:
EGAN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.38 Med: 21.11 Max: 58.19
Current: 58.19
During the past 13 years, eGain's highest Return-on-Tangible-Equity was 58.19%. The lowest was -6.38%. And the median was 21.11%.
EGAN's Return-on-Tangible-Equity is ranked better than 84.45% of 2476
companies
in the Software industry
Industry Median: 8.82
vs EGAN: 58.19
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.
eGain Return-on-Tangible-Equity Related Terms
eGain Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for eGain'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.
EGAN vs THRY, DMRC, PERF: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, eGain'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.
eGain Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, eGain's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where eGain'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 12.55% mean?
eGain (EGAN) has a Return-on-Tangible-Equity of 12.55% 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 eGain and its competitors. This is 41% below median its historical median of 21.11. According to the industry distribution chart, eGain ranks #385 out of 2476 companies in the Software industry, placing it in the top 15.5%.
Is eGain's Return-on-Tangible-Equity too high?
eGain's current Return-on-Tangible-Equity of 12.55% is 41% below median its 10-year median of 21.11. The Software industry median Return-on-Tangible-Equity is 8.82. eGain's value of 12.55% is 42.3% above this industry median. Based on the distribution chart, eGain ranks #385 out of 2476 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, eGain has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does eGain's Return-on-Tangible-Equity compare to THRY and DMRC?
According to the Software industry distribution chart, eGain ranks #385 out of 2476 companies for Return-on-Tangible-Equity. This places eGain in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.82. eGain's value of 12.55% is 42.3% above this benchmark. While the company's 10-year median is 21.11 vs. the industry median of 8.82, eGain 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 8.82, based on 2,476 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. eGain's current Return-on-Tangible-Equity of 12.55% is 42.3% 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 eGain and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. eGain's current Return-on-Tangible-Equity is 12.55%, which is 41% below median its own 10-year median of 21.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is eGain stock overvalued right now?
Based on GuruFocus' analysis, eGain (EGAN) is currently considered Fairly Valued. The stock's GF Value™ is $7.05, compared to a current price of $6.56 — trading 7% below its estimated fair value. The current Return-on-Tangible-Equity is 12.55%, which is 41% below median its 10-year median of 21.11 and 42.3% above the Software industry median of 8.82. eGain's overall GF Score™ is 67/100 with 5 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 eGain (EGAN), the current Return-on-Tangible-Equity is 12.55% 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 eGain (EGAN) Overvalued in 2026?
Based on GuruFocus' analysis, eGain stock appears to be undervalued.
The current stock price of $6.56 is trading 7% below its estimated GF Value™ of $7.05.
GuruFocus considers eGain to be Fairly Valued.
Key valuation signals for EGAN:
Return-on-Tangible-Equity: 12.55% (41% below median its 10-year median of 21.11)
GF Value™: $7.05 vs. price of $6.56 (7% below fair value)
Industry Position: 42.3% above the Software median (#385 of 2476)
No single metric tells the full story. See the EGAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
eGain Corp provides an AI knowledge hub solution to automate customer experience. The company sells its SaaS solution to enterprises aiming to improve customer experience while reducing costs by using AI to deliver trusted, consumable answers. The solution is organized into three hubs: AI Agent, AI Knowledge Hub, and Conversation Hub. The company also offers SaaS services on a cloud-based subscription platform, typically through a 36-month contract with pricing based on agents or sessions. It also provides professional services, including consulting, implementation, training, and managed services. The majority of its revenue comes from SaaS. The company operates in North America, Europe, the Middle East, and Africa, with the majority of revenue coming from North America.
67GF Score
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