Sleep Cycle ABOSTO:SLEEP -0.20%83 Return-on-Tangible-Equity is 41.36% as of Mar. 2026, which is 53% below its 10-year median of 88.40. GuruFocus rates OSTO:SLEEP with a GF Score™ of 83/100 and a GF Value™ of kr30.15 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,467 Software companies, Sleep Cycle AB ranks better than 87.15% 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. Sleep Cycle AB's annualized net income for the quarter that ended in Mar. 2026 was kr22.0 Mil. Sleep Cycle AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was kr53.2 Mil. Therefore, Sleep Cycle AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 41.36%.
The historical rank and industry rank for Sleep Cycle AB's Return-on-Tangible-Equity or its related term are showing as below:
OSTO:SLEEP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.54 Med: 88.4 Max: 1258.73
Current: 81.52
During the past 9 years, Sleep Cycle AB's highest Return-on-Tangible-Equity was 1,258.73%. The lowest was 15.54%. And the median was 88.40%.
OSTO:SLEEP's Return-on-Tangible-Equity is ranked better than 87.15% of 2467
companies
in the Software industry
Industry Median: 8.82
vs OSTO:SLEEP: 81.52
Sleep Cycle AB (OSTO:SLEEP) Return-on-Tangible-Equity Explanation
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.
Sleep Cycle AB Return-on-Tangible-Equity Related Terms
Sleep Cycle AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sleep Cycle AB'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.
OSTO:SLEEP vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Sleep Cycle AB'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.
Sleep Cycle AB Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Sleep Cycle AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sleep Cycle AB'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 41.36% mean?
Sleep Cycle AB (OSTO:SLEEP) has a Return-on-Tangible-Equity of 41.36% 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 Sleep Cycle AB and its competitors. This is 53% below median its historical median of 88.40. Over the past decade, Sleep Cycle AB's Return-on-Tangible-Equity has ranged from 15.54 to 1,258.73. According to the industry distribution chart, Sleep Cycle AB ranks #317 out of 2467 companies in the Software industry, placing it in the top 12.8%.
Is Sleep Cycle AB's Return-on-Tangible-Equity too high?
Sleep Cycle AB's current Return-on-Tangible-Equity of 41.36% is 53% below median its 10-year median of 88.40. Over the past 10 years, this metric has ranged from a low of 15.54 to a high of 1,258.73. The Software industry median Return-on-Tangible-Equity is 8.82. Sleep Cycle AB's value of 41.36% is 368.9% above this industry median. Based on the distribution chart, Sleep Cycle AB ranks #317 out of 2467 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sleep Cycle AB has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sleep Cycle AB's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Sleep Cycle AB ranks #317 out of 2467 companies for Return-on-Tangible-Equity. This places Sleep Cycle AB in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.82. Sleep Cycle AB's value of 41.36% is 368.9% above this benchmark. Historically, Sleep Cycle AB's own Return-on-Tangible-Equity has ranged from 15.54 to 1,258.73 over the past decade. While the company's 10-year median is 88.40 vs. the industry median of 8.82, Sleep Cycle AB 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. Sleep Cycle AB's current Return-on-Tangible-Equity of 41.36% is 368.9% 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 Sleep Cycle AB 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. Sleep Cycle AB's current Return-on-Tangible-Equity is 41.36%, which is 53% below median its own 10-year median of 88.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sleep Cycle AB stock overvalued right now?
Based on GuruFocus' analysis, Sleep Cycle AB (OSTO:SLEEP) is currently considered Modestly Undervalued. The stock's GF Value™ is kr30.15, compared to a current price of kr24.55 — trading 18.6% below its estimated fair value. The current Return-on-Tangible-Equity is 41.36%, which is 53% below median its 10-year median of 88.40 and 368.9% above the Software industry median of 8.82. Sleep Cycle AB's overall GF Score™ is 83/100 with 7 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 Sleep Cycle AB (OSTO:SLEEP), the current Return-on-Tangible-Equity is 41.36% 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 Sleep Cycle AB (OSTO:SLEEP) Overvalued in 2026?
Based on GuruFocus' analysis, Sleep Cycle AB stock appears to be undervalued.
The current stock price of kr24.55 is trading 18.6% below its estimated GF Value™ of kr30.15.
GuruFocus considers Sleep Cycle AB to be Modestly Undervalued.
Key valuation signals for OSTO:SLEEP:
Return-on-Tangible-Equity: 41.36% (53% below median its 10-year median of 88.40)
GF Value™: kr30.15 vs. price of kr24.55 (18.6% below fair value)
Industry Position: 368.9% above the Software median (#317 of 2467)
No single metric tells the full story. See the OSTO:SLEEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sleep Cycle AB is a sleep tracker application. It helps people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks sleep patterns through the night and wakes up users in the light-sleep phase, providing valuable insights designed to improve sleep quality. Geographically group operates in Sweden and other countries in which all of revenue is generated from Sweden.
83GF Score
Get the complete analysis for OSTO:SLEEP
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