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AppFolioFRA:4P0 -6.18%77 Return-on-Tangible-Equity is 46.84% as of Jun. 2026, which is 69% above its 10-year median of 27.74. GuruFocus rates FRA:4P0 with a GF Score™ of 77/100 and a GF Value™ of €280.85 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,487 Software companies, AppFolio ranks better than 81.54% 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. AppFolio's annualized net income for the quarter that ended in Jun. 2026 was €144.2 Mil. AppFolio's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €308.0 Mil. Therefore, AppFolio's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 46.84%.
The historical rank and industry rank for AppFolio's Return-on-Tangible-Equity or its related term are showing as below:
FRA:4P0'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -38.09 Med: 27.74 Max: 158.34
Current: 44.78
During the past 13 years, AppFolio's highest Return-on-Tangible-Equity was 158.34%. The lowest was -38.09%. And the median was 27.74%.
FRA:4P0's Return-on-Tangible-Equity is ranked better than 81.54% of 2487
companies
in the Software industry
Industry Median: 9.03
vs FRA:4P0: 44.78
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.
AppFolio Return-on-Tangible-Equity Related Terms
AppFolio Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AppFolio'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:4P0 vs CVLT, NAVN, DUOL: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, AppFolio'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.
AppFolio Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, AppFolio's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AppFolio'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 46.84% mean?
AppFolio (FRA:4P0) has a Return-on-Tangible-Equity of 46.84% 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 AppFolio and its competitors. This is 69% above median its historical median of 27.74. According to the industry distribution chart, AppFolio ranks #459 out of 2487 companies in the Software industry, placing it in the top 18.5%.
Is AppFolio's Return-on-Tangible-Equity too high?
AppFolio's current Return-on-Tangible-Equity of 46.84% is 69% above median its 10-year median of 27.74. The Software industry median Return-on-Tangible-Equity is 9.03. AppFolio's value of 46.84% is 418.7% above this industry median. Based on the distribution chart, AppFolio ranks #459 out of 2487 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, AppFolio has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AppFolio's Return-on-Tangible-Equity compare to CVLT and NAVN?
According to the Software industry distribution chart, AppFolio ranks #459 out of 2487 companies for Return-on-Tangible-Equity. This places AppFolio in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.03. AppFolio's value of 46.84% is 418.7% above this benchmark. While the company's 10-year median is 27.74 vs. the industry median of 9.03, AppFolio 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 9.03, based on 2,487 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. AppFolio's current Return-on-Tangible-Equity of 46.84% is 418.7% 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 AppFolio and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AppFolio's current Return-on-Tangible-Equity is 46.84%, which is 69% above median its own 10-year median of 27.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AppFolio stock overvalued right now?
Based on GuruFocus' analysis, AppFolio (FRA:4P0) is currently considered Significantly Undervalued. The stock's GF Value™ is €280.85, compared to a current price of €152.65 — trading 45.6% below its estimated fair value. The current Return-on-Tangible-Equity is 46.84%, which is 69% above median its 10-year median of 27.74 and 418.7% above the Software industry median of 9.03. AppFolio's overall GF Score™ is 77/100 with 1 warning sign 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 AppFolio (FRA:4P0), the current Return-on-Tangible-Equity is 46.84% 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 AppFolio (FRA:4P0) Overvalued in 2026?
Based on GuruFocus' analysis, AppFolio stock appears to be undervalued.
The current stock price of €152.65 is trading 45.6% below its estimated GF Value™ of €280.85.
GuruFocus considers AppFolio to be Significantly Undervalued.
Key valuation signals for FRA:4P0:
Return-on-Tangible-Equity: 46.84% (69% above median its 10-year median of 27.74)
GF Value™: €280.85 vs. price of €152.65 (45.6% below fair value)
Industry Position: 418.7% above the Software median (#459 of 2487)
No single metric tells the full story. See the FRA:4P0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AppFolio Inc provides cloud-based software solutions for the real estate industry. Its property management software offers property managers an end-to-end solution to their business needs. The group's products include cloud-based property management software (Appfolio Property Manager). Its solutions are AppFolio Property Manager Core, AppFolio Property Manager Plus, and AppFolio Property Manager Max. It also offers value-added services, such as screening, risk mitigation, and electronic payment services. Its markets are Single-Family, Multifamily, Student Housing, Affordable Housing, Community Associations, Commercial, and Investment Management. The business activity of the firm predominantly functions in the United States and it generates revenue in the form of subscription fees.
77GF Score
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