DynatraceMEX:DT 65 Return-on-Tangible-Equity is 5.32% as of Mar. 2026, which is 88% below its 10-year median of 43.02. GuruFocus rates MEX:DT with a GF Score™ of 65/100 and a GF Value™ of MXN1,074.56 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,469 Software companies, Dynatrace ranks better than 55.93% 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. Dynatrace's annualized net income for the quarter that ended in Mar. 2026 was MXN1,256 Mil. Dynatrace's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN23,598 Mil. Therefore, Dynatrace's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.32%.
The historical rank and industry rank for Dynatrace's Return-on-Tangible-Equity or its related term are showing as below:
MEX:DT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.29 Med: 43.02 Max: 122.48
Current: 12.29
During the past 10 years, Dynatrace's highest Return-on-Tangible-Equity was 122.48%. The lowest was 12.29%. And the median was 43.02%.
MEX:DT's Return-on-Tangible-Equity is ranked better than 55.93% of 2469
companies
in the Software industry
Industry Median: 8.62
vs MEX:DT: 12.29
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.
Dynatrace Return-on-Tangible-Equity Related Terms
Dynatrace Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Dynatrace'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.
MEX:DT vs U, TYL, PTC: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Dynatrace'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.
Dynatrace Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Dynatrace's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dynatrace'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 5.32% mean?
Dynatrace (MEX:DT) has a Return-on-Tangible-Equity of 5.32% 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 Dynatrace and its competitors. This is 88% below median its historical median of 43.02. Over the past decade, Dynatrace's Return-on-Tangible-Equity has ranged from 12.29 to 122.48. According to the industry distribution chart, Dynatrace ranks #1088 out of 2469 companies in the Software industry, placing it in the top 44.1%.
Is Dynatrace's Return-on-Tangible-Equity too high?
Dynatrace's current Return-on-Tangible-Equity of 5.32% is 88% below median its 10-year median of 43.02. Over the past 10 years, this metric has ranged from a low of 12.29 to a high of 122.48. The Software industry median Return-on-Tangible-Equity is 8.62. Dynatrace's value of 5.32% is 38.3% below this industry median. Based on the distribution chart, Dynatrace ranks #1088 out of 2469 companies in the Software industry, which is above the industry midpoint. Overall, Dynatrace has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dynatrace's Return-on-Tangible-Equity compare to U and TYL?
According to the Software industry distribution chart, Dynatrace ranks #1088 out of 2469 companies for Return-on-Tangible-Equity. This puts Dynatrace in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.62. Dynatrace's value of 5.32% is 38.3% below this benchmark. Historically, Dynatrace's own Return-on-Tangible-Equity has ranged from 12.29 to 122.48 over the past decade. While the company's 10-year median is 43.02 vs. the industry median of 8.62, Dynatrace has consistently been below 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 8.62, based on 2,469 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. Dynatrace's current Return-on-Tangible-Equity of 5.32% is 38.3% below 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 Dynatrace and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dynatrace's current Return-on-Tangible-Equity is 5.32%, which is 88% below median its own 10-year median of 43.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dynatrace stock overvalued right now?
Based on GuruFocus' analysis, Dynatrace (MEX:DT) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,074.56, compared to a current price of MXN695.00 — trading 35.3% below its estimated fair value. The current Return-on-Tangible-Equity is 5.32%, which is 88% below median its 10-year median of 43.02 and 38.3% below the Software industry median of 8.62. Dynatrace's overall GF Score™ is 65/100 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 Dynatrace (MEX:DT), the current Return-on-Tangible-Equity is 5.32% 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 Dynatrace (MEX:DT) Overvalued in 2026?
Based on GuruFocus' analysis, Dynatrace stock appears to be undervalued.
The current stock price of MXN695.00 is trading 35.3% below its estimated GF Value™ of MXN1,074.56.
GuruFocus considers Dynatrace to be Significantly Undervalued.
Key valuation signals for MEX:DT:
Return-on-Tangible-Equity: 5.32% (88% below median its 10-year median of 43.02)
GF Value™: MXN1,074.56 vs. price of MXN695.00 (35.3% below fair value)
Industry Position: 38.3% below the Software median (#1088 of 2469)
No single metric tells the full story. See the MEX:DT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dynatrace is a software-as-a-service company that enables customers to monitor and analyze their information technology infrastructure, from servers to applications and Python scripts. Dynatrace's unified platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to optimize their business for service-level objectives and ensure uptime.
65GF Score
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