LTMNSE:LTM +4.74%95 Return-on-Tangible-Equity is 24.86% as of Mar. 2026, which is 28% below its 10-year median of 34.66. GuruFocus rates NSE:LTM with a GF Score™ of 95/100 and a GF Value™ of ₹6,319.43 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,467 Software companies, LTM ranks better than 70.33% 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. LTM's annualized net income for the quarter that ended in Mar. 2026 was ₹55,692 Mil. LTM's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹223,997 Mil. Therefore, LTM's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.86%.
The historical rank and industry rank for LTM's Return-on-Tangible-Equity or its related term are showing as below:
NSE:LTM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.89 Med: 34.66 Max: 42.14
Current: 22.97
During the past 13 years, LTM's highest Return-on-Tangible-Equity was 42.14%. The lowest was 22.89%. And the median was 34.66%.
NSE:LTM's Return-on-Tangible-Equity is ranked better than 70.33% of 2467
companies
in the Software industry
Industry Median: 8.82
vs NSE:LTM: 22.97
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.
LTM Return-on-Tangible-Equity Related Terms
LTM Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LTM'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.
NSE:LTM vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, LTM'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.
LTM Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, LTM's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LTM'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 24.86% mean?
LTM (NSE:LTM) has a Return-on-Tangible-Equity of 24.86% 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 LTM and its competitors. This is 28% below median its historical median of 34.66. Over the past decade, LTM's Return-on-Tangible-Equity has ranged from 22.89 to 42.14. According to the industry distribution chart, LTM ranks #732 out of 2467 companies in the Software industry, placing it in the top 29.7%.
Is LTM's Return-on-Tangible-Equity too high?
LTM's current Return-on-Tangible-Equity of 24.86% is 28% below median its 10-year median of 34.66. Over the past 10 years, this metric has ranged from a low of 22.89 to a high of 42.14. The Software industry median Return-on-Tangible-Equity is 8.82. LTM's value of 24.86% is 181.9% above this industry median. Based on the distribution chart, LTM ranks #732 out of 2467 companies in the Software industry, which is above the industry midpoint. Overall, LTM has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LTM's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, LTM ranks #732 out of 2467 companies for Return-on-Tangible-Equity. This puts LTM in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.82. LTM's value of 24.86% is 181.9% above this benchmark. Historically, LTM's own Return-on-Tangible-Equity has ranged from 22.89 to 42.14 over the past decade. While the company's 10-year median is 34.66 vs. the industry median of 8.82, LTM 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 8.82, based on 2,467 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. LTM's current Return-on-Tangible-Equity of 24.86% is 181.9% 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 LTM and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LTM's current Return-on-Tangible-Equity is 24.86%, which is 28% below median its own 10-year median of 34.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LTM stock overvalued right now?
Based on GuruFocus' analysis, LTM (NSE:LTM) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹6,319.43, compared to a current price of ₹4,037.20 — trading 36.1% below its estimated fair value. The current Return-on-Tangible-Equity is 24.86%, which is 28% below median its 10-year median of 34.66 and 181.9% above the Software industry median of 8.82. LTM's overall GF Score™ is 95/100 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 LTM (NSE:LTM), the current Return-on-Tangible-Equity is 24.86% 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 LTM (NSE:LTM) Overvalued in 2026?
Based on GuruFocus' analysis, LTM stock appears to be undervalued.
The current stock price of ₹4,037.20 is trading 36.1% below its estimated GF Value™ of ₹6,319.43.
GuruFocus considers LTM to be Significantly Undervalued.
Key valuation signals for NSE:LTM:
Return-on-Tangible-Equity: 24.86% (28% below median its 10-year median of 34.66)
GF Value™: ₹6,319.43 vs. price of ₹4,037.20 (36.1% below fair value)
Industry Position: 181.9% above the Software median (#732 of 2467)
No single metric tells the full story. See the NSE:LTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LTM Ltd is a technology services and consulting company. It offers a range of IT services like agile, analytics and information management, application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions, and platform-based solutions to the clients in diverse industries. The company has identified (i) Banking, Financial Services & Insurance, (ii) Technology, Media & Communications, (iii) Manufacturing & Resources, (iv) Consumer Business, and (v) Healthcare, Life Sciences & Public Services as reportable segments. The majority of revenue is derived from the Banking, Financial Services & Insurance segment. Geographically, the maximum revenue is generated from North America, followed by Europe and the rest of the World.
95GF Score
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