ePlusFRA:MLE -0.69%81 Return-on-Tangible-Equity is 10.14% as of Mar. 2026, which is 50% below its 10-year median of 20.11. GuruFocus rates FRA:MLE with a GF Score™ of 81/100 and a GF Value™ of €76.50. The stock has 4 warning signs investors should review. Among 2,470 Software companies, ePlus ranks better than 63.52% 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. ePlus's annualized net income for the quarter that ended in Mar. 2026 was €70 Mil. ePlus's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €687 Mil. Therefore, ePlus's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.14%.
The historical rank and industry rank for ePlus's Return-on-Tangible-Equity or its related term are showing as below:
FRA:MLE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.13 Med: 20.11 Max: 23.36
Current: 16.82
During the past 13 years, ePlus's highest Return-on-Tangible-Equity was 23.36%. The lowest was 15.13%. And the median was 20.11%.
FRA:MLE's Return-on-Tangible-Equity is ranked better than 63.52% of 2470
companies
in the Software industry
Industry Median: 8.77
vs FRA:MLE: 16.82
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.
ePlus Return-on-Tangible-Equity Related Terms
ePlus Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ePlus'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:MLE vs SPSC, INTA, ALRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, ePlus'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.
ePlus Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, ePlus's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ePlus'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 10.14% mean?
ePlus (FRA:MLE) has a Return-on-Tangible-Equity of 10.14% 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 ePlus and its competitors. This is 50% below median its historical median of 20.11. Over the past decade, ePlus' Return-on-Tangible-Equity has ranged from 15.13 to 23.36. According to the industry distribution chart, ePlus ranks #901 out of 2470 companies in the Software industry, placing it in the top 36.5%.
Is ePlus' Return-on-Tangible-Equity too high?
ePlus' current Return-on-Tangible-Equity of 10.14% is 50% below median its 10-year median of 20.11. Over the past 10 years, this metric has ranged from a low of 15.13 to a high of 23.36. The Software industry median Return-on-Tangible-Equity is 8.77. ePlus' value of 10.14% is 15.6% above this industry median. Based on the distribution chart, ePlus ranks #901 out of 2470 companies in the Software industry, which is above the industry midpoint. Overall, ePlus has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does ePlus' Return-on-Tangible-Equity compare to SPSC and INTA?
According to the Software industry distribution chart, ePlus ranks #901 out of 2470 companies for Return-on-Tangible-Equity. This puts ePlus in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.77. ePlus' value of 10.14% is 15.6% above this benchmark. Historically, ePlus' own Return-on-Tangible-Equity has ranged from 15.13 to 23.36 over the past decade. While the company's 10-year median is 20.11 vs. the industry median of 8.77, ePlus 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 8.77, based on 2,470 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. ePlus's current Return-on-Tangible-Equity of 10.14% is 15.6% 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 ePlus and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ePlus's current Return-on-Tangible-Equity is 10.14%, which is 50% below median its own 10-year median of 20.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ePlus stock overvalued right now?
ePlus (FRA:MLE) has a current Return-on-Tangible-Equity of 10.14%. The stock's GF Value™ is €76.50, compared to a current price of €71.50 — trading 6.5% below its estimated fair value. The current Return-on-Tangible-Equity is 10.14%, which is 50% below median its 10-year median of 20.11 and 15.6% above the Software industry median of 8.77. ePlus' overall GF Score™ is 81/100 with 4 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 ePlus (FRA:MLE), the current Return-on-Tangible-Equity is 10.14% 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 ePlus (FRA:MLE) Overvalued in 2026?
Based on GuruFocus' analysis, ePlus stock appears to be undervalued.
The current stock price of €71.50 is trading 6.5% below its estimated GF Value™ of €76.50.
Key valuation signals for FRA:MLE:
Return-on-Tangible-Equity: 10.14% (50% below median its 10-year median of 20.11)
GF Value™: €76.50 vs. price of €71.50 (6.5% below fair value)
Industry Position: 15.6% above the Software median (#901 of 2470)
No single metric tells the full story. See the FRA:MLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ePlus Inc is a provider of technology solutions across the IT spectrum, spanning security, cloud, data center, networking, collaboration, AI, service provider, and critical infrastructure, and emerging solutions, to domestic and foreign organizations across all industry segments. Its solutions leverage a broad range of professional, consultative, and managed services across the technology spectrum. The company possesses top-level engineering certifications with a broad range of IT technologies that enable the company to offer multi-vendor IT solutions that are optimized for each of its customers' specific requirements. It also offers a wide portfolio of technology and other capital asset financing solutions to customers across commercial and government enterprises, designing programs.
81GF Score
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