Butterfly NetworkFRA:7JA +1.63%40 Return-on-Tangible-Equity is -29.22% as of Mar. 2026. GuruFocus rates FRA:7JA with a GF Score™ of 40/100 and a GF Value™ of €2.00 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 756 Medical Devices & Instruments companies, Butterfly Network ranks worse than 78.57% 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. Butterfly Network's annualized net income for the quarter that ended in Mar. 2026 was €-43.86 Mil. Butterfly Network's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €150.09 Mil. Therefore, Butterfly Network's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -29.22%.
The historical rank and industry rank for Butterfly Network's Return-on-Tangible-Equity or its related term are showing as below:
FRA:7JA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -79.98 Med: -50.65 Max: -37.86
Current: -37.86
During the past 7 years, Butterfly Network's highest Return-on-Tangible-Equity was -37.86%. The lowest was -79.98%. And the median was -50.65%.
FRA:7JA's Return-on-Tangible-Equity is ranked worse than 78.57% of 756
companies
in the Medical Devices & Instruments industry
Industry Median: 4.08
vs FRA:7JA: -37.86
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.
Butterfly Network Return-on-Tangible-Equity Related Terms
Butterfly Network Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Butterfly Network'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:7JA vs TMDX, AXGN, NEOG: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Butterfly Network'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.
Butterfly Network Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Butterfly Network's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Butterfly Network'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 -29.22% mean?
Butterfly Network (FRA:7JA) has a Return-on-Tangible-Equity of -29.22% 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 Butterfly Network and its competitors. According to the industry distribution chart, Butterfly Network ranks #594 out of 756 companies in the Medical Devices & Instruments industry, placing it in the top 78.6%.
Is Butterfly Network's Return-on-Tangible-Equity too high?
Butterfly Network's current Return-on-Tangible-Equity is -29.22%. Based on the distribution chart, Butterfly Network ranks #594 out of 756 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Butterfly Network has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Butterfly Network's Return-on-Tangible-Equity compare to TMDX and AXGN?
According to the Medical Devices & Instruments industry distribution chart, Butterfly Network ranks #594 out of 756 companies for Return-on-Tangible-Equity. This places Butterfly Network in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.08. 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 Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.08, based on 756 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 Butterfly Network and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Butterfly Network's current Return-on-Tangible-Equity is -29.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Butterfly Network stock overvalued right now?
Based on GuruFocus' analysis, Butterfly Network (FRA:7JA) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.00, compared to a current price of €7.18 — trading 259% above its estimated fair value. The current Return-on-Tangible-Equity is -29.22%. Butterfly Network's overall GF Score™ is 40/100 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 Butterfly Network (FRA:7JA), the current Return-on-Tangible-Equity is -29.22% 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 Butterfly Network (FRA:7JA) Overvalued in 2026?
Based on GuruFocus' analysis, Butterfly Network stock appears to be overvalued.
The current stock price of €7.18 is trading 259% above its estimated GF Value™ of €2.00.
GuruFocus considers Butterfly Network to be Significantly Overvalued.
Key valuation signals for FRA:7JA:
Return-on-Tangible-Equity: -29.22%
GF Value™: €2.00 vs. price of €7.18 (259% above fair value)
No single metric tells the full story. See the FRA:7JA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Butterfly Network Inc is a digital health business transforming care with handheld, whole-body ultrasound. Powered by its proprietary Ultrasound-on-Chip technology, its solution enables the acquisition of imaging information from an affordable, powerful device that fits in a healthcare professional's pocket with a combination of cloud-connected software and hardware technology that is easily accessed through a mobile application. Butterfly iQ+ is an ultrasound device that can perform whole-body imaging in a single handheld probe using semiconductor technology. The company operates in one reportable segment, which includes all activities related to the development, manufacture, and sale of the Company's products, software, and other services.
40GF Score
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