Prevas ABFRA:J89 +0.14%67 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates FRA:J89 with a GF Score™ of 67/100 and a GF Value™ of €10.08 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 2,476 Software companies, Prevas AB ranks better than 99.92% 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. Prevas AB's annualized net income for the quarter that ended in Mar. 2026 was €7.5 Mil. Prevas AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-5.8 Mil. Therefore, Prevas AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Prevas AB's Return-on-Tangible-Equity or its related term are showing as below:
FRA:J89'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 47.4 Med: 93.12 Max: 192
Current: Negative Tangible Equity
During the past 13 years, Prevas AB's highest Return-on-Tangible-Equity was 192.00%. The lowest was 47.40%. And the median was 93.12%.
FRA:J89's Return-on-Tangible-Equity is ranked better than 99.92% of 2476
companies
in the Software industry
Industry Median: 8.82
vs FRA:J89: Negative Tangible Equity
Prevas AB (FRA:J89) 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.
Prevas AB Return-on-Tangible-Equity Related Terms
Prevas AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Prevas 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:J89 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Prevas 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.
Prevas AB Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Prevas AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Prevas 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 Negative Tangible Equity% mean?
Prevas AB (FRA:J89) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Prevas AB and its competitors. Over the past decade, Prevas AB's Return-on-Tangible-Equity has ranged from 47.40 to 192.00. According to the industry distribution chart, Prevas AB ranks #2 out of 2476 companies in the Software industry, placing it in the top 0.099999999999994%.
Is Prevas AB's Return-on-Tangible-Equity too high?
Prevas AB's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 47.40 to a high of 192.00. Based on the distribution chart, Prevas AB ranks #2 out of 2476 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Prevas AB has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prevas AB's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Prevas AB ranks #2 out of 2476 companies for Return-on-Tangible-Equity. This places Prevas AB in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.82. Historically, Prevas AB's own Return-on-Tangible-Equity has ranged from 47.40 to 192.00 over the past decade. 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 2,476 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. 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 Prevas 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. Prevas AB's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prevas AB stock overvalued right now?
Based on GuruFocus' analysis, Prevas AB (FRA:J89) is currently considered Significantly Undervalued. The stock's GF Value™ is €10.08, compared to a current price of €7.06 — trading 30% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Prevas AB's overall GF Score™ is 67/100 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 Prevas AB (FRA:J89), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Prevas AB (FRA:J89) Overvalued in 2026?
Based on GuruFocus' analysis, Prevas AB stock appears to be undervalued.
The current stock price of €7.06 is trading 30% below its estimated GF Value™ of €10.08.
GuruFocus considers Prevas AB to be Significantly Undervalued.
No single metric tells the full story. See the FRA:J89 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prevas AB is a Sweden-based information technology (IT) company that offers solutions, services, and products to customers who develop products with high IT content and need to streamline and automate their operations. The company's products are segmented as automotive, products and units, steel and minerals, defense, energy, life science, manufacturing, engineering, and telecom industries. The company has two geographical segments, namely Sweden, Finland, Denmark, and Other. It derives maximum revenue from Sweden.
67GF Score
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