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VSTECS HoldingsHKSE:00856 -6.02%87 Return-on-Tangible-Equity is 15.86% as of Dec. 2025, which is 0% above its 10-year median of 15.83. GuruFocus rates HKSE:00856 with a GF Score™ of 87/100 and a GF Value™ of HK$6.47 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,486 Software companies, VSTECS Holdings ranks better than 59.33% 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. VSTECS Holdings's annualized net income for the quarter that ended in Dec. 2025 was HK$1,486 Mil. VSTECS Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$9,371 Mil. Therefore, VSTECS Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 15.86%.
The historical rank and industry rank for VSTECS Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:00856'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.08 Med: 15.83 Max: 18.74
Current: 15.02
During the past 13 years, VSTECS Holdings's highest Return-on-Tangible-Equity was 18.74%. The lowest was 11.08%. And the median was 15.83%.
HKSE:00856's Return-on-Tangible-Equity is ranked better than 59.33% of 2486
companies
in the Software industry
Industry Median: 9.705
vs HKSE:00856: 15.02
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.
VSTECS Holdings Return-on-Tangible-Equity Related Terms
VSTECS Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for VSTECS Holdings'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.
HKSE:00856 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, VSTECS Holdings'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.
VSTECS Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, VSTECS Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where VSTECS Holdings'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 15.86% mean?
VSTECS Holdings (HKSE:00856) has a Return-on-Tangible-Equity of 15.86% 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 VSTECS Holdings and its competitors. This is near median its historical median of 15.83. Over the past decade, VSTECS Holdings' Return-on-Tangible-Equity has ranged from 11.08 to 18.74. According to the industry distribution chart, VSTECS Holdings ranks #1011 out of 2486 companies in the Software industry, placing it in the top 40.7%.
Is VSTECS Holdings' Return-on-Tangible-Equity too high?
VSTECS Holdings' current Return-on-Tangible-Equity of 15.86% is near median its 10-year median of 15.83. Over the past 10 years, this metric has ranged from a low of 11.08 to a high of 18.74. The Software industry median Return-on-Tangible-Equity is 9.71. VSTECS Holdings' value of 15.86% is 63.4% above this industry median. Based on the distribution chart, VSTECS Holdings ranks #1011 out of 2486 companies in the Software industry, which is above the industry midpoint. Overall, VSTECS Holdings has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does VSTECS Holdings' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, VSTECS Holdings ranks #1011 out of 2486 companies for Return-on-Tangible-Equity. This puts VSTECS Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 9.71. VSTECS Holdings' value of 15.86% is 63.4% above this benchmark. Historically, VSTECS Holdings' own Return-on-Tangible-Equity has ranged from 11.08 to 18.74 over the past decade. While the company's 10-year median is 15.83 vs. the industry median of 9.71, VSTECS Holdings 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 9.71, based on 2,486 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. VSTECS Holdings's current Return-on-Tangible-Equity of 15.86% is 63.4% 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 VSTECS Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VSTECS Holdings's current Return-on-Tangible-Equity is 15.86%, which is near median its own 10-year median of 15.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VSTECS Holdings stock overvalued right now?
Based on GuruFocus' analysis, VSTECS Holdings (HKSE:00856) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$6.47, compared to a current price of HK$9.99 — trading 54.4% above its estimated fair value. The current Return-on-Tangible-Equity is 15.86%, which is near median its 10-year median of 15.83 and 63.4% above the Software industry median of 9.71. VSTECS Holdings' overall GF Score™ is 87/100 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 VSTECS Holdings (HKSE:00856), the current Return-on-Tangible-Equity is 15.86% 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 VSTECS Holdings (HKSE:00856) Overvalued in 2026?
Based on GuruFocus' analysis, VSTECS Holdings stock appears to be overvalued.
The current stock price of HK$9.99 is trading 54.4% above its estimated GF Value™ of HK$6.47.
GuruFocus considers VSTECS Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00856:
Return-on-Tangible-Equity: 15.86% (near median its 10-year median of 15.83)
GF Value™: HK$6.47 vs. price of HK$9.99 (54.4% above fair value)
Industry Position: 63.4% above the Software median (#1011 of 2486)
No single metric tells the full story. See the HKSE:00856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VSTECS Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the development of an information technology (IT) product channel and the provision of technical solution integration services. The group's business segments include Consumer electronics, Enterprise systems, and Cloud computing. A majority of its revenue is generated from the Enterprise systems segment, which provides enterprise system tools (middleware, operating systems, Unix/NT servers, databases, and storage) for IT infrastructure and IT infrastructure design and implementation, training, maintenance, and support services. Geographically, the group generates maximum revenue from North Asia and the rest from Southeast Asia.
87GF Score
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