Modelon ABFRA:3VM 56 Return-on-Tangible-Equity is -107.48% as of Mar. 2026. GuruFocus rates FRA:3VM with a GF Score™ of 56/100 and a GF Value™ of €0.58. The stock has 4 warning signs investors should review. Among 2,467 Software companies, Modelon AB ranks worse than 91.69% 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. Modelon AB's annualized net income for the quarter that ended in Mar. 2026 was €-2.90 Mil. Modelon AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2.69 Mil. Therefore, Modelon AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -107.48%.
The historical rank and industry rank for Modelon AB's Return-on-Tangible-Equity or its related term are showing as below:
FRA:3VM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -118.47 Med: -45.92 Max: 6.88
Current: -99.81
During the past 7 years, Modelon AB's highest Return-on-Tangible-Equity was 6.88%. The lowest was -118.47%. And the median was -45.92%.
FRA:3VM's Return-on-Tangible-Equity is ranked worse than 91.69% of 2467
companies
in the Software industry
Industry Median: 8.82
vs FRA:3VM: -99.81
Modelon AB (FRA:3VM) 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.
Modelon AB Return-on-Tangible-Equity Related Terms
Modelon AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Modelon AB'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:3VM vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Modelon AB'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.
Modelon AB Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Modelon AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Modelon AB'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 -107.48% mean?
Modelon AB (FRA:3VM) has a Return-on-Tangible-Equity of -107.48% 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 Modelon AB and its competitors. According to the industry distribution chart, Modelon AB ranks #2262 out of 2467 companies in the Software industry, placing it in the top 91.7%.
Is Modelon AB's Return-on-Tangible-Equity too high?
Modelon AB's current Return-on-Tangible-Equity is -107.48%. Based on the distribution chart, Modelon AB ranks #2262 out of 2467 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Modelon AB has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Modelon AB's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Modelon AB ranks #2262 out of 2467 companies for Return-on-Tangible-Equity. This places Modelon AB in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.82. 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 2,467 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 Modelon AB 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. Modelon AB's current Return-on-Tangible-Equity is -107.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Modelon AB stock overvalued right now?
Modelon AB (FRA:3VM) has a current Return-on-Tangible-Equity of -107.48%. The stock's GF Value™ is €0.58, compared to a current price of €0.83 — trading 42.2% above its estimated fair value. The current Return-on-Tangible-Equity is -107.48%. Modelon AB's overall GF Score™ is 56/100 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 Modelon AB (FRA:3VM), the current Return-on-Tangible-Equity is -107.48% 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 Modelon AB (FRA:3VM) Overvalued in 2026?
Based on GuruFocus' analysis, Modelon AB stock appears to be overvalued.
The current stock price of €0.83 is trading 42.2% above its estimated GF Value™ of €0.58.
Key valuation signals for FRA:3VM:
Return-on-Tangible-Equity: -107.48%
GF Value™: €0.58 vs. price of €0.83 (42.2% above fair value)
No single metric tells the full story. See the FRA:3VM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Modelon AB offers systems modeling and simulation software that accelerates product innovation, development, and operations in a range of industries. The company's flagship product, Modelon Impact, is a cloud-native system simulation software platform featuring a collaborative browser-based interface and thousands of models and components spanning a broad range of applications.
56GF Score
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