Paradox Interactive ABFRA:ETA +0.17%81 Return-on-Tangible-Equity is 24.66% as of Mar. 2026, which is 79% below its 10-year median of 119.94. GuruFocus rates FRA:ETA with a GF Score™ of 81/100 and a GF Value™ of €16.16 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 490 Interactive Media companies, Paradox Interactive AB ranks better than 52.86% 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. Paradox Interactive AB's annualized net income for the quarter that ended in Mar. 2026 was €32.0 Mil. Paradox Interactive AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €129.8 Mil. Therefore, Paradox Interactive AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.66%.
The historical rank and industry rank for Paradox Interactive AB's Return-on-Tangible-Equity or its related term are showing as below:
FRA:ETA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.54 Med: 119.94 Max: 211.5
Current: 7.54
During the past 12 years, Paradox Interactive AB's highest Return-on-Tangible-Equity was 211.50%. The lowest was 7.54%. And the median was 119.94%.
FRA:ETA's Return-on-Tangible-Equity is ranked better than 52.86% of 490
companies
in the Interactive Media industry
Industry Median: 5.865
vs FRA:ETA: 7.54
Paradox Interactive AB (FRA:ETA) 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.
Paradox Interactive AB Return-on-Tangible-Equity Related Terms
Paradox Interactive AB Return-on-Tangible-Equity Historical Data
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The historical data trend for Paradox Interactive 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.
Paradox Interactive AB Return-on-Tangible-Equity Chart
FRA:ETA vs NTES, EA, TTWO: Return-on-Tangible-Equity Comparison
For the Electronic Gaming & Multimedia subindustry, Paradox Interactive 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.
Paradox Interactive AB Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Paradox Interactive AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Paradox Interactive 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 24.66% mean?
Paradox Interactive AB (FRA:ETA) has a Return-on-Tangible-Equity of 24.66% 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 Paradox Interactive AB and its competitors. This is 79% below median its historical median of 119.94. Over the past decade, Paradox Interactive AB's Return-on-Tangible-Equity has ranged from 7.54 to 211.50. According to the industry distribution chart, Paradox Interactive AB ranks #231 out of 490 companies in the Interactive Media industry, placing it in the top 47.1%.
Is Paradox Interactive AB's Return-on-Tangible-Equity too high?
Paradox Interactive AB's current Return-on-Tangible-Equity of 24.66% is 79% below median its 10-year median of 119.94. Over the past 10 years, this metric has ranged from a low of 7.54 to a high of 211.50. The Interactive Media industry median Return-on-Tangible-Equity is 5.87. Paradox Interactive AB's value of 24.66% is 320.5% above this industry median. Based on the distribution chart, Paradox Interactive AB ranks #231 out of 490 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Paradox Interactive AB has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paradox Interactive AB's Return-on-Tangible-Equity compare to NTES and EA?
According to the Interactive Media industry distribution chart, Paradox Interactive AB ranks #231 out of 490 companies for Return-on-Tangible-Equity. This puts Paradox Interactive AB in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.87. Paradox Interactive AB's value of 24.66% is 320.5% above this benchmark. Historically, Paradox Interactive AB's own Return-on-Tangible-Equity has ranged from 7.54 to 211.50 over the past decade. While the company's 10-year median is 119.94 vs. the industry median of 5.87, Paradox Interactive AB 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 an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.87, based on 490 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. Paradox Interactive AB's current Return-on-Tangible-Equity of 24.66% is 320.5% 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 Paradox Interactive AB and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paradox Interactive AB's current Return-on-Tangible-Equity is 24.66%, which is 79% below median its own 10-year median of 119.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paradox Interactive AB stock overvalued right now?
Based on GuruFocus' analysis, Paradox Interactive AB (FRA:ETA) is currently considered Modestly Undervalued. The stock's GF Value™ is €16.16, compared to a current price of €11.88 — trading 26.5% below its estimated fair value. The current Return-on-Tangible-Equity is 24.66%, which is 79% below median its 10-year median of 119.94 and 320.5% above the Interactive Media industry median of 5.87. Paradox Interactive AB's overall GF Score™ is 81/100 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 Paradox Interactive AB (FRA:ETA), the current Return-on-Tangible-Equity is 24.66% 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 Paradox Interactive AB (FRA:ETA) Overvalued in 2026?
Based on GuruFocus' analysis, Paradox Interactive AB stock appears to be undervalued.
The current stock price of €11.88 is trading 26.5% below its estimated GF Value™ of €16.16.
GuruFocus considers Paradox Interactive AB to be Modestly Undervalued.
Key valuation signals for FRA:ETA:
Return-on-Tangible-Equity: 24.66% (79% below median its 10-year median of 119.94)
GF Value™: €16.16 vs. price of €11.88 (26.5% below fair value)
Industry Position: 320.5% above the Interactive Media median (#231 of 490)
No single metric tells the full story. See the FRA:ETA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paradox Interactive AB is a Swedish company. It is engaged in the development and publishing of PC-based games. The company's product portfolio includes franchise brands such as Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities, Skylines, Tyranny and Magicka. Paradox is also involved in the publishing and internal development of games and licensing of White Wolf's brands. The company distributes its games through the digital platform Steam as well as on Apple, Google Play, and Sony stores. It operates its business across the world. The majority of the company's revenue comes from the United States, while it also has its presence in Sweden, Rest of Europe and Rest of the World.
81GF Score
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