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Edarat Communication And Information Technology Co (SAU:9557) 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.
Edarat Communication And Information Technology Co Return-on-Tangible-Equity Related Terms
Edarat Communication And Information Technology Co Return-on-Tangible-Equity Historical Data
* 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.
Edarat Communication And Information Technology Co Return-on-Tangible-Equity Chart
Edarat Communication And Information Technology Co Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
Return-on-Tangible-Equity
50.19
73.33
59.55
50.81
47.56
Edarat Communication And Information Technology Co Semi-Annual Data
SAU:9557 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Edarat Communication And Information Technology Co'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.
Edarat Communication And Information Technology Co Return-on-Tangible-Equity vs Software Industry
* 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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 50.75% mean?
Edarat Communication And Information Technology Co (SAU:9557) has a Return-on-Tangible-Equity of 50.75% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Edarat Communication And Information Technology Co and its competitors. This is near median its historical median of 50.81. Over the past decade, Edarat Communication And Information Technology Co's Return-on-Tangible-Equity has ranged from 47.56 to 73.33. According to the industry distribution chart, Edarat Communication And Information Technology Co ranks #441 out of 2487 companies in the Software industry, placing it in the top 17.7%.
Is Edarat Communication And Information Technology Co's Return-on-Tangible-Equity too high?
Edarat Communication And Information Technology Co's current Return-on-Tangible-Equity of 50.75% is near median its 10-year median of 50.81. Over the past 10 years, this metric has ranged from a low of 47.56 to a high of 73.33. The Software industry median Return-on-Tangible-Equity is 9.03. Edarat Communication And Information Technology Co's value of 50.75% is 462% above this industry median. Based on the distribution chart, Edarat Communication And Information Technology Co ranks #441 out of 2487 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Edarat Communication And Information Technology Co has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Edarat Communication And Information Technology Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Edarat Communication And Information Technology Co ranks #441 out of 2487 companies for Return-on-Tangible-Equity. This places Edarat Communication And Information Technology Co in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.03. Edarat Communication And Information Technology Co's value of 50.75% is 462% above this benchmark. Historically, Edarat Communication And Information Technology Co's own Return-on-Tangible-Equity has ranged from 47.56 to 73.33 over the past decade. While the company's 10-year median is 50.81 vs. the industry median of 9.03, Edarat Communication And Information Technology Co 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 9.03, based on 2,487 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. Edarat Communication And Information Technology Co's current Return-on-Tangible-Equity of 50.75% is 462% 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 Edarat Communication And Information Technology Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edarat Communication And Information Technology Co's current Return-on-Tangible-Equity is 50.75%, which is near median its own 10-year median of 50.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edarat Communication And Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co (SAU:9557) is currently considered Fairly Valued. The stock's GF Value™ is ﷼251.37, compared to a current price of ﷼273.80 — trading 8.9% above its estimated fair value. The current Return-on-Tangible-Equity is 50.75%, which is near median its 10-year median of 50.81 and 462% above the Software industry median of 9.03. Edarat Communication And Information Technology Co's overall GF Score™ is 51/100 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 Edarat Communication And Information Technology Co (SAU:9557), the current Return-on-Tangible-Equity is 50.75% as of Dec. 2025. 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 Edarat Communication And Information Technology Co (SAU:9557) Overvalued in 2026?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co stock appears to be overvalued.
The current stock price of ﷼273.80 is trading 8.9% above its estimated GF Value™ of ﷼251.37.
GuruFocus considers Edarat Communication And Information Technology Co to be Fairly Valued.
Key valuation signals for SAU:9557:
Return-on-Tangible-Equity: 50.75% (near median its 10-year median of 50.81)
GF Value™: ﷼251.37 vs. price of ﷼273.80 (8.9% above fair value)
Industry Position: 462% above the Software median (#441 of 2487)
No single metric tells the full story. See the SAU:9557 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Edarat Communication And Information Technology Co is engaged in the implementation of service contracts including provision of virtual network operator services, colocation services, system analysis, design and programming of software, providing management and monitoring of communications and information networks, establishing web hosting infrastructure and related services, data center services and related activities and subscriptions to provide cloud computing service. Its services include data center engineering, data center colocation, Edge AI, Edarat Marketplace, and cloud services. The company has two operating segments; Data Center Engineering Services and Cloud Service. It derives maximum revenue from Data Center Engineering Services segment.
51GF Score
Get the complete analysis for SAU:9557
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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