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GBS Software AGFRA:INW 55 Return-on-Tangible-Equity is 41.79% as of Dec. 2025. GuruFocus rates FRA:INW with a GF Score™ of 55/100 and a GF Value™ of €1.19 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,476 Software companies, GBS Software AG ranks better than 66.36% 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. GBS Software AG's annualized net income for the quarter that ended in Dec. 2025 was €1.69 Mil. GBS Software AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €4.04 Mil. Therefore, GBS Software AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 41.79%.
The historical rank and industry rank for GBS Software AG's Return-on-Tangible-Equity or its related term are showing as below:
FRA:INW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -36.53 Med: -17.63 Max: 327.33
Current: 18.92
During the past 13 years, GBS Software AG's highest Return-on-Tangible-Equity was 327.33%. The lowest was -36.53%. And the median was -17.63%.
FRA:INW's Return-on-Tangible-Equity is ranked better than 66.36% of 2476
companies
in the Software industry
Industry Median: 8.825
vs FRA:INW: 18.92
GBS Software AG (FRA:INW) 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.
GBS Software AG Return-on-Tangible-Equity Related Terms
GBS Software AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GBS Software AG'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:INW vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, GBS Software AG'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.
GBS Software AG Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, GBS Software AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GBS Software AG'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 41.79% mean?
GBS Software AG (FRA:INW) has a Return-on-Tangible-Equity of 41.79% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on GBS Software AG and its competitors. According to the industry distribution chart, GBS Software AG ranks #833 out of 2476 companies in the Software industry, placing it in the top 33.6%.
Is GBS Software AG's Return-on-Tangible-Equity too high?
GBS Software AG's current Return-on-Tangible-Equity is 41.79%. The Software industry median Return-on-Tangible-Equity is 8.83. GBS Software AG's value of 41.79% is 373.5% above this industry median. Based on the distribution chart, GBS Software AG ranks #833 out of 2476 companies in the Software industry, which is above the industry midpoint. Overall, GBS Software AG has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GBS Software AG's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, GBS Software AG ranks #833 out of 2476 companies for Return-on-Tangible-Equity. This puts GBS Software AG in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. GBS Software AG's value of 41.79% is 373.5% above this benchmark. 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 8.83, based on 2,476 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. GBS Software AG's current Return-on-Tangible-Equity of 41.79% is 373.5% 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 GBS Software AG and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GBS Software AG's current Return-on-Tangible-Equity is 41.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GBS Software AG stock overvalued right now?
Based on GuruFocus' analysis, GBS Software AG (FRA:INW) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.19, compared to a current price of €3.86 — trading 224.4% above its estimated fair value. The current Return-on-Tangible-Equity is 41.79% and 373.5% above the Software industry median of 8.83. GBS Software AG's overall GF Score™ is 55/100 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 GBS Software AG (FRA:INW), the current Return-on-Tangible-Equity is 41.79% as of Dec. 2025. 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 GBS Software AG (FRA:INW) Overvalued in 2026?
Based on GuruFocus' analysis, GBS Software AG stock appears to be overvalued.
The current stock price of €3.86 is trading 224.4% above its estimated GF Value™ of €1.19.
GuruFocus considers GBS Software AG to be Significantly Overvalued.
Key valuation signals for FRA:INW:
Return-on-Tangible-Equity: 41.79%
GF Value™: €1.19 vs. price of €3.86 (224.4% above fair value)
Industry Position: 373.5% above the Software median (#833 of 2476)
No single metric tells the full story. See the FRA:INW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GBS Software AG provides solutions and services in the fields of messaging security and workflow for the IBM and Microsoft collaboration platforms. It acts as a providers of email security and workflow management solutions. The company operates in Europe, North America, and Asia. It provides retirement management solutions as well. The group provides the following services: Domino Administration, XPages migration, Mobility, Consulting, and Training and mentoring.
55GF Score
Get the complete analysis for FRA:INW
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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