Sound GroupSOGP -0.93%58 Return-on-Tangible-Equity is 90.27% as of Dec. 2025. GuruFocus rates SOGP with a GF Score™ of 58/100 and a GF Value™ of $5.86 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 490 Interactive Media companies, Sound Group ranks better than 90.2% 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. Sound Group's annualized net income for the quarter that ended in Dec. 2025 was $44.3 Mil. Sound Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $49.1 Mil. Therefore, Sound Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 90.27%.
The historical rank and industry rank for Sound Group's Return-on-Tangible-Equity or its related term are showing as below:
SOGP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -61.39 Med: -25.86 Max: 73.61
Current: 73.61
During the past 9 years, Sound Group's highest Return-on-Tangible-Equity was 73.61%. The lowest was -61.39%. And the median was -25.86%.
SOGP's Return-on-Tangible-Equity is ranked better than 90.2% of 490
companies
in the Interactive Media industry
Industry Median: 5.865
vs SOGP: 73.61
Sound Group (NAS:SOGP) 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.
Sound Group Return-on-Tangible-Equity Related Terms
Sound Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sound Group'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.
SOGP vs AREN, ZDGE, SJ: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, Sound Group'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.
Sound Group Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Sound Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sound Group'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 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 90.27% mean?
Sound Group (SOGP) has a Return-on-Tangible-Equity of 90.27% 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 Sound Group and its competitors. According to the industry distribution chart, Sound Group ranks #48 out of 490 companies in the Interactive Media industry, placing it in the top 9.8%.
Is Sound Group's Return-on-Tangible-Equity too high?
Sound Group's current Return-on-Tangible-Equity is 90.27%. The Interactive Media industry median Return-on-Tangible-Equity is 5.87. Sound Group's value of 90.27% is 1439.1% above this industry median. Based on the distribution chart, Sound Group ranks #48 out of 490 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Sound Group has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sound Group's Return-on-Tangible-Equity compare to AREN and ZDGE?
According to the Interactive Media industry distribution chart, Sound Group ranks #48 out of 490 companies for Return-on-Tangible-Equity. This places Sound Group in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.87. Sound Group's value of 90.27% is 1439.1% above this benchmark. 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 an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.87, based on 490 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. Sound Group's current Return-on-Tangible-Equity of 90.27% is 1439.1% 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 Sound Group and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sound Group's current Return-on-Tangible-Equity is 90.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sound Group stock overvalued right now?
Based on GuruFocus' analysis, Sound Group (SOGP) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.86, compared to a current price of $11.23 — trading 91.6% above its estimated fair value. The current Return-on-Tangible-Equity is 90.27% and 1439.1% above the Interactive Media industry median of 5.87. Sound Group's overall GF Score™ is 58/100 with 2 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 Sound Group (SOGP), the current Return-on-Tangible-Equity is 90.27% 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 Sound Group (SOGP) Overvalued in 2026?
Based on GuruFocus' analysis, Sound Group stock appears to be overvalued.
The current stock price of $11.23 is trading 91.6% above its estimated GF Value™ of $5.86.
GuruFocus considers Sound Group to be Significantly Overvalued.
Key valuation signals for SOGP:
Return-on-Tangible-Equity: 90.27%
GF Value™: $5.86 vs. price of $11.23 (91.6% above fair value)
Industry Position: 1439.1% above the Interactive Media median (#48 of 490)
No single metric tells the full story. See the SOGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sound Group Inc is a world-wide, AI-powered audio company on a mission to help people connect and live happier. The group is leveraging its voice AI technologies and deep expertise in audio interaction. It is building a diverse ecosystem of intelligent audio products that caters to an overall user base. By integrating technology, products, and real-world data within a user-centric ecosystem, the Company generates a powerful growth flywheel that drives continuous innovation and accelerates world-wide expansion. Geographically, the group derives all its revenue from the PRC.
58GF Score
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