WavestoneFRA:2WSA -4.65%92 Return-on-Tangible-Equity is 104.90% as of Sep. 2025, which is 43% below its 10-year median of 183.97. GuruFocus rates FRA:2WSA with a GF Score™ of 92/100 and a GF Value™ of €67.04 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,466 Software companies, Wavestone ranks better than 89.9% 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. Wavestone's annualized net income for the quarter that ended in Sep. 2025 was €60.6 Mil. Wavestone's average shareholder tangible equity for the quarter that ended in Sep. 2025 was €57.8 Mil. Therefore, Wavestone's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was 104.90%.
The historical rank and industry rank for Wavestone's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2WSA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 74.06 Med: 183.97 Max: 2357.31
Current: 208.15
During the past 13 years, Wavestone's highest Return-on-Tangible-Equity was 2,357.31%. The lowest was 74.06%. And the median was 183.97%.
FRA:2WSA's Return-on-Tangible-Equity is ranked better than 89.9% of 2466
companies
in the Software industry
Industry Median: 8.67
vs FRA:2WSA: 208.15
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.
Wavestone Return-on-Tangible-Equity Related Terms
Wavestone Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Wavestone'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:2WSA vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Wavestone'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.
Wavestone Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Wavestone's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Wavestone'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 (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 104.90% mean?
Wavestone (FRA:2WSA) has a Return-on-Tangible-Equity of 104.90% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Wavestone and its competitors. This is 43% below median its historical median of 183.97. Over the past decade, Wavestone's Return-on-Tangible-Equity has ranged from 74.06 to 2,357.31. According to the industry distribution chart, Wavestone ranks #249 out of 2466 companies in the Software industry, placing it in the top 10.1%.
Is Wavestone's Return-on-Tangible-Equity too high?
Wavestone's current Return-on-Tangible-Equity of 104.90% is 43% below median its 10-year median of 183.97. Over the past 10 years, this metric has ranged from a low of 74.06 to a high of 2,357.31. The Software industry median Return-on-Tangible-Equity is 8.67. Wavestone's value of 104.90% is 1109.9% above this industry median. Based on the distribution chart, Wavestone ranks #249 out of 2466 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Wavestone has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Wavestone's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Wavestone ranks #249 out of 2466 companies for Return-on-Tangible-Equity. This places Wavestone in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.67. Wavestone's value of 104.90% is 1109.9% above this benchmark. Historically, Wavestone's own Return-on-Tangible-Equity has ranged from 74.06 to 2,357.31 over the past decade. While the company's 10-year median is 183.97 vs. the industry median of 8.67, Wavestone 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. Wavestone's current Return-on-Tangible-Equity of 104.90% is 1109.9% 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 Wavestone 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. Wavestone's current Return-on-Tangible-Equity is 104.90%, which is 43% below median its own 10-year median of 183.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wavestone stock overvalued right now?
Based on GuruFocus' analysis, Wavestone (FRA:2WSA) is currently considered Significantly Undervalued. The stock's GF Value™ is €67.04, compared to a current price of €40.00 — trading 40.3% below its estimated fair value. The current Return-on-Tangible-Equity is 104.90%, which is 43% below median its 10-year median of 183.97 and 1109.9% above the Software industry median of 8.67. Wavestone's overall GF Score™ is 92/100 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 Wavestone (FRA:2WSA), the current Return-on-Tangible-Equity is 104.90% as of Sep. 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 Wavestone (FRA:2WSA) Overvalued in 2026?
Based on GuruFocus' analysis, Wavestone stock appears to be undervalued.
The current stock price of €40.00 is trading 40.3% below its estimated GF Value™ of €67.04.
GuruFocus considers Wavestone to be Significantly Undervalued.
Key valuation signals for FRA:2WSA:
Return-on-Tangible-Equity: 104.90% (43% below median its 10-year median of 183.97)
GF Value™: €67.04 vs. price of €40.00 (40.3% below fair value)
Industry Position: 1109.9% above the Software median (#249 of 2466)
No single metric tells the full story. See the FRA:2WSA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wavestone SA is a management and Information Technology consulting firm. The company serves Services, Consumer goods and distribution, Energy and Utilities, Manufacturing, Public sector and International Institutions, and the Transport and Travel sector. Its technologies include IT and Data architecture, Cybersecurity and digital trust, and others. It provides services such as financial risks and purchases, management and financing of innovation, supply chain, and others. Geographically, it generates the majority of its revenue from France.
92GF Score
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