PagSeguro DigitalPAGS +0.11%90 Return-on-Tangible-Equity is 19.58% as of Mar. 2026, which is 8% above its 10-year median of 18.10. GuruFocus rates PAGS with a GF Score™ of 90/100 and a GF Value™ of $11.95 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,471 Software companies, PagSeguro Digital ranks better than 66.09% 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. PagSeguro Digital's annualized net income for the quarter that ended in Mar. 2026 was $417 Mil. PagSeguro Digital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,131 Mil. Therefore, PagSeguro Digital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.58%.
The historical rank and industry rank for PagSeguro Digital's Return-on-Tangible-Equity or its related term are showing as below:
PAGS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.06 Med: 18.1 Max: 77.27
Current: 18.67
During the past 12 years, PagSeguro Digital's highest Return-on-Tangible-Equity was 77.27%. The lowest was 13.06%. And the median was 18.10%.
PAGS's Return-on-Tangible-Equity is ranked better than 66.09% of 2471
companies
in the Software industry
Industry Median: 8.77
vs PAGS: 18.67
PagSeguro Digital (NYSE:PAGS) 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.
PagSeguro Digital Return-on-Tangible-Equity Related Terms
PagSeguro Digital Return-on-Tangible-Equity Historical Data
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The historical data trend for PagSeguro Digital'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.
PAGS vs ATEN, PAYO, STNE: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital'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.
PagSeguro Digital Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital'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 19.58% mean?
PagSeguro Digital (PAGS) has a Return-on-Tangible-Equity of 19.58% 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 PagSeguro Digital and its competitors. This is near median its historical median of 18.10. Over the past decade, PagSeguro Digital's Return-on-Tangible-Equity has ranged from 13.06 to 77.27. According to the industry distribution chart, PagSeguro Digital ranks #838 out of 2471 companies in the Software industry, placing it in the top 33.9%.
Is PagSeguro Digital's Return-on-Tangible-Equity too high?
PagSeguro Digital's current Return-on-Tangible-Equity of 19.58% is near median its 10-year median of 18.10. Over the past 10 years, this metric has ranged from a low of 13.06 to a high of 77.27. The Software industry median Return-on-Tangible-Equity is 8.77. PagSeguro Digital's value of 19.58% is 123.3% above this industry median. Based on the distribution chart, PagSeguro Digital ranks #838 out of 2471 companies in the Software industry, which is above the industry midpoint. Overall, PagSeguro Digital has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PagSeguro Digital's Return-on-Tangible-Equity compare to ATEN and PAYO?
According to the Software industry distribution chart, PagSeguro Digital ranks #838 out of 2471 companies for Return-on-Tangible-Equity. This puts PagSeguro Digital in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.77. PagSeguro Digital's value of 19.58% is 123.3% above this benchmark. Historically, PagSeguro Digital's own Return-on-Tangible-Equity has ranged from 13.06 to 77.27 over the past decade. While the company's 10-year median is 18.10 vs. the industry median of 8.77, PagSeguro Digital 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 8.77, 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. PagSeguro Digital's current Return-on-Tangible-Equity of 19.58% is 123.3% 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 PagSeguro Digital 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. PagSeguro Digital's current Return-on-Tangible-Equity is 19.58%, which is near median its own 10-year median of 18.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagSeguro Digital stock overvalued right now?
Based on GuruFocus' analysis, PagSeguro Digital (PAGS) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.95, compared to a current price of $9.08 — trading 24% below its estimated fair value. The current Return-on-Tangible-Equity is 19.58%, which is near median its 10-year median of 18.10 and 123.3% above the Software industry median of 8.77. PagSeguro Digital's overall GF Score™ is 90/100 with 4 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 PagSeguro Digital (PAGS), the current Return-on-Tangible-Equity is 19.58% 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 PagSeguro Digital (PAGS) Overvalued in 2026?
Based on GuruFocus' analysis, PagSeguro Digital stock appears to be undervalued.
The current stock price of $9.08 is trading 24% below its estimated GF Value™ of $11.95.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Return-on-Tangible-Equity: 19.58% (near median its 10-year median of 18.10)
GF Value™: $11.95 vs. price of $9.08 (24% below fair value)
Industry Position: 123.3% above the Software median (#838 of 2471)
No single metric tells the full story. See the PAGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
90GF Score
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