Elastic NVMEX:ESTCN 73 Return-on-Tangible-Equity is 264.19% as of Apr. 2026. GuruFocus rates MEX:ESTCN with a GF Score™ of 73/100 and a GF Value™ of MXN1,878.27 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,471 Software companies, Elastic NV ranks better than 84.7% 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. Elastic NV's annualized net income for the quarter that ended in Apr. 2026 was MXN30,541 Mil. Elastic NV's average shareholder tangible equity for the quarter that ended in Apr. 2026 was MXN11,560 Mil. Therefore, Elastic NV's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 264.19%.
The historical rank and industry rank for Elastic NV's Return-on-Tangible-Equity or its related term are showing as below:
MEX:ESTCN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -369.09 Med: -75.58 Max: 59.99
Current: 59.99
During the past 10 years, Elastic NV's highest Return-on-Tangible-Equity was 59.99%. The lowest was -369.09%. And the median was -75.58%.
MEX:ESTCN's Return-on-Tangible-Equity is ranked better than 84.7% of 2471
companies
in the Software industry
Industry Median: 8.77
vs MEX:ESTCN: 59.99
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.
Elastic NV Return-on-Tangible-Equity Related Terms
Elastic NV Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Elastic NV'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:ESTCN vs CVLT, NAVN, PCTY: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Elastic NV'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.
Elastic NV Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Elastic NV's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elastic NV'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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 264.19% mean?
Elastic NV (MEX:ESTCN) has a Return-on-Tangible-Equity of 264.19% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Elastic NV and its competitors. According to the industry distribution chart, Elastic NV ranks #378 out of 2471 companies in the Software industry, placing it in the top 15.3%.
Is Elastic NV's Return-on-Tangible-Equity too high?
Elastic NV's current Return-on-Tangible-Equity is 264.19%. The Software industry median Return-on-Tangible-Equity is 8.77. Elastic NV's value of 264.19% is 2912.4% above this industry median. Based on the distribution chart, Elastic NV ranks #378 out of 2471 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Elastic NV has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elastic NV's Return-on-Tangible-Equity compare to CVLT and NAVN?
According to the Software industry distribution chart, Elastic NV ranks #378 out of 2471 companies for Return-on-Tangible-Equity. This places Elastic NV in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.77. Elastic NV's value of 264.19% is 2912.4% 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 8.77, based on 2,471 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. Elastic NV's current Return-on-Tangible-Equity of 264.19% is 2912.4% 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 Elastic NV 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. Elastic NV's current Return-on-Tangible-Equity is 264.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elastic NV stock overvalued right now?
Based on GuruFocus' analysis, Elastic NV (MEX:ESTCN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,878.27, compared to a current price of MXN1,021.21 — trading 45.6% below its estimated fair value. The current Return-on-Tangible-Equity is 264.19% and 2912.4% above the Software industry median of 8.77. Elastic NV's overall GF Score™ is 73/100 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 Elastic NV (MEX:ESTCN), the current Return-on-Tangible-Equity is 264.19% as of Apr. 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 Elastic NV (MEX:ESTCN) Overvalued in 2026?
Based on GuruFocus' analysis, Elastic NV stock appears to be undervalued.
The current stock price of MXN1,021.21 is trading 45.6% below its estimated GF Value™ of MXN1,878.27.
GuruFocus considers Elastic NV to be Significantly Undervalued.
Key valuation signals for MEX:ESTCN:
Return-on-Tangible-Equity: 264.19%
GF Value™: MXN1,878.27 vs. price of MXN1,021.21 (45.6% below fair value)
Industry Position: 2912.4% above the Software median (#378 of 2471)
No single metric tells the full story. See the MEX:ESTCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elastic is a software company that specializes in AI-search, observability, and security deployments. Its search division offers both traditional keyword search and vector search methods to enable more context-aware querying. The software has open-source origins but generates revenue through valuable add-ons, including simplified data orchestration and server scaling techniques.
73GF Score
Get the complete analysis for MEX:ESTCN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:ESTCN has been successfully added to your 
