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TeradataFRA:3T4 -2.91%75 Return-on-Tangible-Equity is 103.53% as of Jun. 2026, which is 165% above its 10-year median of 39.14. GuruFocus rates FRA:3T4 with a GF Score™ of 75/100 and a GF Value™ of €26.19 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,483 Software companies, Teradata ranks better than 99.96% 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. Teradata's annualized net income for the quarter that ended in Jun. 2026 was €160 Mil. Teradata's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €154 Mil. Therefore, Teradata's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 103.53%.
The historical rank and industry rank for Teradata's Return-on-Tangible-Equity or its related term are showing as below:
FRA:3T4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -26.38 Med: 39.14 Max: 466.67
Current: Negative Tangible Equity
During the past 13 years, Teradata's highest Return-on-Tangible-Equity was 466.67%. The lowest was -26.38%. And the median was 39.14%.
FRA:3T4's Return-on-Tangible-Equity is ranked better than 99.96% of 2483
companies
in the Software industry
Industry Median: 9.68
vs FRA:3T4: Negative Tangible Equity
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.
Teradata Return-on-Tangible-Equity Related Terms
Teradata Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Teradata'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:3T4 vs STNE, AVPT, PAGS: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Teradata'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.
Teradata Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Teradata's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Teradata'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 103.53% mean?
Teradata (FRA:3T4) has a Return-on-Tangible-Equity of 103.53% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Teradata and its competitors. This is 165% above median its historical median of 39.14. According to the industry distribution chart, Teradata ranks #1 out of 2483 companies in the Software industry, placing it in the top 0%.
Is Teradata's Return-on-Tangible-Equity too high?
Teradata's current Return-on-Tangible-Equity of 103.53% is 165% above median its 10-year median of 39.14. The Software industry median Return-on-Tangible-Equity is 9.68. Teradata's value of 103.53% is 969.5% above this industry median. Based on the distribution chart, Teradata ranks #1 out of 2483 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Teradata has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Teradata's Return-on-Tangible-Equity compare to STNE and AVPT?
According to the Software industry distribution chart, Teradata ranks #1 out of 2483 companies for Return-on-Tangible-Equity. This places Teradata in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.68. Teradata's value of 103.53% is 969.5% above this benchmark. While the company's 10-year median is 39.14 vs. the industry median of 9.68, Teradata 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 9.68, based on 2,483 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. Teradata's current Return-on-Tangible-Equity of 103.53% is 969.5% 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 Teradata and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teradata's current Return-on-Tangible-Equity is 103.53%, which is 165% above median its own 10-year median of 39.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teradata stock overvalued right now?
Based on GuruFocus' analysis, Teradata (FRA:3T4) is currently considered Modestly Undervalued. The stock's GF Value™ is €26.19, compared to a current price of €23.06 — trading 12% below its estimated fair value. The current Return-on-Tangible-Equity is 103.53%, which is 165% above median its 10-year median of 39.14 and 969.5% above the Software industry median of 9.68. Teradata's overall GF Score™ is 75/100 with 4 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 Teradata (FRA:3T4), the current Return-on-Tangible-Equity is 103.53% as of Jun. 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 Teradata (FRA:3T4) Overvalued in 2026?
Based on GuruFocus' analysis, Teradata stock appears to be undervalued.
The current stock price of €23.06 is trading 12% below its estimated GF Value™ of €26.19.
GuruFocus considers Teradata to be Modestly Undervalued.
Key valuation signals for FRA:3T4:
Return-on-Tangible-Equity: 103.53% (165% above median its 10-year median of 39.14)
GF Value™: €26.19 vs. price of €23.06 (12% below fair value)
Industry Position: 969.5% above the Software median (#1 of 2483)
No single metric tells the full story. See the FRA:3T4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teradata Corp focused on helping organizations improve business performance, enrich customer experiences, and integrate data across the enterprise. The company's platform provides companies with Harmonized Data: Trusted AI: Teradata VantageCloud: Teradata VantageCore: ClearScape Analytics: and Query Grid. The company generates majority of revenue from the United States.
75GF Score
Get the complete analysis for FRA:3T4
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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