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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. ParaZero Technologies's annualized net income for the quarter that ended in Dec. 2025 was €-5.32 Mil. ParaZero Technologies's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €2.88 Mil. Therefore, ParaZero Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -184.89%.
The historical rank and industry rank for ParaZero Technologies's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2BX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -381.63 Med: -380.46 Max: -168.99
Current: -254.68
During the past 6 years, ParaZero Technologies's highest Return-on-Tangible-Equity was -168.99%. The lowest was -381.63%. And the median was -380.46%.
FRA:2BX's Return-on-Tangible-Equity is ranked worse than 97.01% of 335
companies
in the Aerospace & Defense industry
Industry Median: 8.1
vs FRA:2BX: -254.68
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.
ParaZero Technologies Return-on-Tangible-Equity Related Terms
ParaZero Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ParaZero Technologies'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.
FRA:2BX vs AIRI, HWKE, XERI: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, ParaZero 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.
ParaZero Technologies Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, ParaZero Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ParaZero 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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -184.89% mean?
ParaZero Technologies (FRA:2BX) has a Return-on-Tangible-Equity of -184.89% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ParaZero Technologies and its competitors. According to the industry distribution chart, ParaZero Technologies ranks #325 out of 335 companies in the Aerospace & Defense industry, placing it in the top 97%.
Is ParaZero Technologies' Return-on-Tangible-Equity too high?
ParaZero Technologies' current Return-on-Tangible-Equity is -184.89%. Based on the distribution chart, ParaZero Technologies ranks #325 out of 335 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, ParaZero Technologies has a GF Score™ of 14/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ParaZero Technologies' Return-on-Tangible-Equity compare to AIRI and HWKE?
According to the Aerospace & Defense industry distribution chart, ParaZero Technologies ranks #325 out of 335 companies for Return-on-Tangible-Equity. This places ParaZero Technologies in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.10. 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 an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.10, based on 335 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. 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 ParaZero Technologies and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ParaZero Technologies's current Return-on-Tangible-Equity is -184.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ParaZero Technologies stock overvalued right now?
Based on GuruFocus' analysis, ParaZero Technologies (FRA:2BX) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.59, compared to a current price of €0.49 — trading 17.1% below its estimated fair value. The current Return-on-Tangible-Equity is -184.89%. ParaZero Technologies' overall GF Score™ is 14/100 with 6 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 ParaZero Technologies (FRA:2BX), the current Return-on-Tangible-Equity is -184.89% as of Dec. 2025. 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 ParaZero Technologies (FRA:2BX) Overvalued in 2026?
Based on GuruFocus' analysis, ParaZero Technologies stock appears to be undervalued.
The current stock price of €0.49 is trading 17.1% below its estimated GF Value™ of €0.59.
GuruFocus considers ParaZero Technologies to be Modestly Undervalued.
Key valuation signals for FRA:2BX:
Return-on-Tangible-Equity: -184.89%
GF Value™: €0.59 vs. price of €0.49 (17.1% below fair value)
No single metric tells the full story. See the FRA:2BX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ParaZero Technologies Ltd operates as an aerospace defense company focused on the development of smart, autonomous solutions for the manned and unmanned aerial systems (UAS) industry. The Company develops, manufactures, markets, and sells counter-UAS net-launching platforms designed to protect against hostile drones in both battlefield and urban environments, precision aerial delivery systems for military applications, and smart, autonomous parachute safety systems designed to enable safe flight operations over populated areas and beyond visual line-of-sight. The Company sells its products internationally.
14GF Score
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