Paymentus HoldingsPAY +2.92%84 Return-on-Tangible-Equity is 23.37% as of Mar. 2026, which is 27% above its 10-year median of 18.44. GuruFocus rates PAY with a GF Score™ of 84/100 and a GF Value™ of $38.93 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,468 Software companies, Paymentus Holdings ranks better than 70.18% 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. Paymentus Holdings's annualized net income for the quarter that ended in Mar. 2026 was $84 Mil. Paymentus Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $357 Mil. Therefore, Paymentus Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.37%.
The historical rank and industry rank for Paymentus Holdings's Return-on-Tangible-Equity or its related term are showing as below:
PAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.28 Med: 18.44 Max: 33.05
Current: 22.82
During the past 7 years, Paymentus Holdings's highest Return-on-Tangible-Equity was 33.05%. The lowest was -0.28%. And the median was 18.44%.
PAY's Return-on-Tangible-Equity is ranked better than 70.18% of 2468
companies
in the Software industry
Industry Median: 8.605
vs PAY: 22.82
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.
Paymentus Holdings Return-on-Tangible-Equity Related Terms
Paymentus Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Paymentus Holdings'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.
PAY vs NTCT, INFQ, TDC: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Paymentus Holdings'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.
Paymentus Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Paymentus Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Paymentus Holdings'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 23.37% mean?
Paymentus Holdings (PAY) has a Return-on-Tangible-Equity of 23.37% 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 Paymentus Holdings and its competitors. This is 27% above median its historical median of 18.44. According to the industry distribution chart, Paymentus Holdings ranks #736 out of 2468 companies in the Software industry, placing it in the top 29.8%.
Is Paymentus Holdings' Return-on-Tangible-Equity too high?
Paymentus Holdings' current Return-on-Tangible-Equity of 23.37% is 27% above median its 10-year median of 18.44. The Software industry median Return-on-Tangible-Equity is 8.61. Paymentus Holdings' value of 23.37% is 171.6% above this industry median. Based on the distribution chart, Paymentus Holdings ranks #736 out of 2468 companies in the Software industry, which is above the industry midpoint. Overall, Paymentus Holdings has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paymentus Holdings' Return-on-Tangible-Equity compare to NTCT and INFQ?
According to the Software industry distribution chart, Paymentus Holdings ranks #736 out of 2468 companies for Return-on-Tangible-Equity. This puts Paymentus Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.61. Paymentus Holdings' value of 23.37% is 171.6% above this benchmark. While the company's 10-year median is 18.44 vs. the industry median of 8.61, Paymentus Holdings 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 8.61, based on 2,468 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. Paymentus Holdings's current Return-on-Tangible-Equity of 23.37% is 171.6% 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 Paymentus Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paymentus Holdings's current Return-on-Tangible-Equity is 23.37%, which is 27% above median its own 10-year median of 18.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paymentus Holdings stock overvalued right now?
Based on GuruFocus' analysis, Paymentus Holdings (PAY) is currently considered Modestly Undervalued. The stock's GF Value™ is $38.93, compared to a current price of $27.85 — trading 28.5% below its estimated fair value. The current Return-on-Tangible-Equity is 23.37%, which is 27% above median its 10-year median of 18.44 and 171.6% above the Software industry median of 8.61. Paymentus Holdings' overall GF Score™ is 84/100 with 1 warning sign 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 Paymentus Holdings (PAY), the current Return-on-Tangible-Equity is 23.37% 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 Paymentus Holdings (PAY) Overvalued in 2026?
Based on GuruFocus' analysis, Paymentus Holdings stock appears to be undervalued.
The current stock price of $27.85 is trading 28.5% below its estimated GF Value™ of $38.93.
GuruFocus considers Paymentus Holdings to be Modestly Undervalued.
Key valuation signals for PAY:
Return-on-Tangible-Equity: 23.37% (27% above median its 10-year median of 18.44)
GF Value™: $38.93 vs. price of $27.85 (28.5% below fair value)
Industry Position: 171.6% above the Software median (#736 of 2468)
No single metric tells the full story. See the PAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paymentus Holdings Inc provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers through a Software-as-a-Service (SaaS), secure, omni-channel technology platform. The platform integrates with a biller's financial and operational systems to provide secure and flexible processing of payments, including credit cards, debit cards, eChecks, and digital wallets, across multiple channels such as online, mobile, IVR, call centers, chatbots, and voice-based assistants. The company generates the majority of its revenue from payment transaction fees processed through its platform. Geographically, it derives the maximum revenue from the United States.
84GF Score
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