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. IPE Universal's annualized net income for the quarter that ended in Jun. 2012 was $1.00 Mil. IPE Universal's average shareholder tangible equity for the quarter that ended in Jun. 2012 was $0.78 Mil. Therefore, IPE Universal's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2012 was 127.88%.
The historical rank and industry rank for IPE Universal's Return-on-Tangible-Equity or its related term are showing as below:
IPEU's Return-on-Tangible-Equity is not ranked *
in the Software industry.
Industry Median: 8.76 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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.
IPE Universal Return-on-Tangible-Equity Related Terms
IPE Universal Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for IPE Universal'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.
IPE Universal Return-on-Tangible-Equity Chart
IPE Universal Annual Data
Trend
Jun09
Jun10
Jun11
Return-on-Tangible-Equity
-240.74
Negative Tangible Equity
261.97
IPE Universal Semi-Annual Data
Jun09
Jun10
Jun11
Jun12
Return-on-Tangible-Equity
-240.74
Negative Tangible Equity
261.97
127.88
IPEU vs SPNS, SPT, PD: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, IPE Universal'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.
IPE Universal Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, IPE Universal's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where IPE Universal'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 one times the annual (Jun. 2012) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 127.88% mean?
IPE Universal (IPEU) has a Return-on-Tangible-Equity of 127.88% as of Jun. 2012. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on IPE Universal and its competitors.
Is IPE Universal's Return-on-Tangible-Equity too high?
IPE Universal's current Return-on-Tangible-Equity is 127.88%. The Software industry median Return-on-Tangible-Equity is 8.76. IPE Universal's value of 127.88% is 1359.8% above this industry median. Overall, IPE Universal has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does IPE Universal's Return-on-Tangible-Equity compare to SPNS and SPT?
IPE Universal's Return-on-Tangible-Equity of 127.88% can be compared against companies in the Software industry. The industry median Return-on-Tangible-Equity is 8.76. IPE Universal's value of 127.88% is 1359.8% 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 8.76, based on 2,472 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. IPE Universal's current Return-on-Tangible-Equity of 127.88% is 1359.8% 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 IPE Universal and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPE Universal's current Return-on-Tangible-Equity is 127.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPE Universal stock overvalued right now?
IPE Universal (IPEU) has a current Return-on-Tangible-Equity of 127.88%. The current Return-on-Tangible-Equity is 127.88% and 1359.8% above the Software industry median of 8.76. IPE Universal's overall GF Score™ is 30/100. 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 IPE Universal (IPEU), the current Return-on-Tangible-Equity is 127.88% as of Jun. 2012. 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.
IPE Universal Inc is engaged in developing childhood education software systems. The company is engaged in high-tech business developing early childhood education software systems located in Taiwan and China. The company also provides education programs, products, services and technological products but also licenses IP services to businesses, NFTs, Crypto, Virtual Real Estate, Metaverse (Virtual World), and merchandise and many other products.
30GF Score
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