Directa Sim SpAFRA:ZP7 64 Return-on-Tangible-Equity is 22.19% as of Dec. 2025, which is 16% below its 10-year median of 26.43. GuruFocus rates FRA:ZP7 with a GF Score™ of 64/100 and a GF Value™ of €6.01 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 783 Capital Markets companies, Directa Sim SpA ranks better than 82.25% 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. Directa Sim SpA's annualized net income for the quarter that ended in Dec. 2025 was €10.75 Mil. Directa Sim SpA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €48.47 Mil. Therefore, Directa Sim SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 22.19%.
The historical rank and industry rank for Directa Sim SpA's Return-on-Tangible-Equity or its related term are showing as below:
FRA:ZP7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.01 Med: 26.43 Max: 28.36
Current: 26.76
During the past 7 years, Directa Sim SpA's highest Return-on-Tangible-Equity was 28.36%. The lowest was 0.01%. And the median was 26.43%.
FRA:ZP7's Return-on-Tangible-Equity is ranked better than 82.25% of 783
companies
in the Capital Markets industry
Industry Median: 6.52
vs FRA:ZP7: 26.76
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.
Directa Sim SpA Return-on-Tangible-Equity Related Terms
Directa Sim SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Directa Sim SpA'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:ZP7 vs MS, GS, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, Directa Sim SpA'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.
Directa Sim SpA Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Directa Sim SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Directa Sim SpA'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 22.19% mean?
Directa Sim SpA (FRA:ZP7) has a Return-on-Tangible-Equity of 22.19% 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 Directa Sim SpA and its competitors. This is 16% below median its historical median of 26.43. Over the past decade, Directa Sim SpA's Return-on-Tangible-Equity has ranged from 0.01 to 28.36. According to the industry distribution chart, Directa Sim SpA ranks #139 out of 783 companies in the Capital Markets industry, placing it in the top 17.8%.
Is Directa Sim SpA's Return-on-Tangible-Equity too high?
Directa Sim SpA's current Return-on-Tangible-Equity of 22.19% is 16% below median its 10-year median of 26.43. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 28.36. The Capital Markets industry median Return-on-Tangible-Equity is 6.52. Directa Sim SpA's value of 22.19% is 240.3% above this industry median. Based on the distribution chart, Directa Sim SpA ranks #139 out of 783 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Directa Sim SpA has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Directa Sim SpA's Return-on-Tangible-Equity compare to MS and GS?
According to the Capital Markets industry distribution chart, Directa Sim SpA ranks #139 out of 783 companies for Return-on-Tangible-Equity. This places Directa Sim SpA in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.52. Directa Sim SpA's value of 22.19% is 240.3% above this benchmark. Historically, Directa Sim SpA's own Return-on-Tangible-Equity has ranged from 0.01 to 28.36 over the past decade. While the company's 10-year median is 26.43 vs. the industry median of 6.52, Directa Sim SpA 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.52, based on 783 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. Directa Sim SpA's current Return-on-Tangible-Equity of 22.19% is 240.3% 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 Directa Sim SpA and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Directa Sim SpA's current Return-on-Tangible-Equity is 22.19%, which is 16% below median its own 10-year median of 26.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Directa Sim SpA stock overvalued right now?
Based on GuruFocus' analysis, Directa Sim SpA (FRA:ZP7) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.01, compared to a current price of €7.50 — trading 24.8% above its estimated fair value. The current Return-on-Tangible-Equity is 22.19%, which is 16% below median its 10-year median of 26.43 and 240.3% above the Capital Markets industry median of 6.52. Directa Sim SpA's overall GF Score™ is 64/100 with 3 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 Directa Sim SpA (FRA:ZP7), the current Return-on-Tangible-Equity is 22.19% 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 Directa Sim SpA (FRA:ZP7) Overvalued in 2026?
Based on GuruFocus' analysis, Directa Sim SpA stock appears to be overvalued.
The current stock price of €7.50 is trading 24.8% above its estimated GF Value™ of €6.01.
GuruFocus considers Directa Sim SpA to be Modestly Overvalued.
Key valuation signals for FRA:ZP7:
Return-on-Tangible-Equity: 22.19% (16% below median its 10-year median of 26.43)
GF Value™: €6.01 vs. price of €7.50 (24.8% above fair value)
Industry Position: 240.3% above the Capital Markets median (#139 of 783)
No single metric tells the full story. See the FRA:ZP7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Directa Sim SpA is an online brokerage firm that allows private investors to operate directly on financial markets. The financial products of the company include Stocks, Bonds, Futures, Funds, Options, and Certificates & CW, among others.
64GF Score
Get the complete analysis for FRA:ZP7
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