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GDS HoldingsSTU:G40 -1.40%64 Return-on-Tangible-Equity is 45.33% as of Mar. 2026. GuruFocus rates STU:G40 with a GF Score™ of 64/100 and a GF Value™ of €18.28 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,477 Software companies, GDS Holdings ranks better than 57.45% 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. GDS Holdings's annualized net income for the quarter that ended in Mar. 2026 was €1,330 Mil. GDS Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,933 Mil. Therefore, GDS Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 45.33%.
The historical rank and industry rank for GDS Holdings's Return-on-Tangible-Equity or its related term are showing as below:
STU:G40'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -28.92 Med: -8.88 Max: 22.26
Current: 13.62
During the past 12 years, GDS Holdings's highest Return-on-Tangible-Equity was 22.26%. The lowest was -28.92%. And the median was -8.88%.
STU:G40's Return-on-Tangible-Equity is ranked better than 57.45% of 2477
companies
in the Software industry
Industry Median: 8.83
vs STU:G40: 13.62
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.
GDS Holdings Return-on-Tangible-Equity Related Terms
GDS Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GDS 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.
STU:G40 vs PSN, INGM, G: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, GDS 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.
GDS Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GDS 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 45.33% mean?
GDS Holdings (STU:G40) has a Return-on-Tangible-Equity of 45.33% 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 GDS Holdings and its competitors. According to the industry distribution chart, GDS Holdings ranks #1054 out of 2477 companies in the Software industry, placing it in the top 42.6%.
Is GDS Holdings' Return-on-Tangible-Equity too high?
GDS Holdings' current Return-on-Tangible-Equity is 45.33%. The Software industry median Return-on-Tangible-Equity is 8.83. GDS Holdings' value of 45.33% is 413.4% above this industry median. Based on the distribution chart, GDS Holdings ranks #1054 out of 2477 companies in the Software industry, which is above the industry midpoint. Overall, GDS Holdings has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Return-on-Tangible-Equity compare to PSN and INGM?
According to the Software industry distribution chart, GDS Holdings ranks #1054 out of 2477 companies for Return-on-Tangible-Equity. This puts GDS Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. GDS Holdings' value of 45.33% is 413.4% 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 a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,477 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. GDS Holdings's current Return-on-Tangible-Equity of 45.33% is 413.4% 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 GDS Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current Return-on-Tangible-Equity is 45.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (STU:G40) is currently considered Significantly Overvalued. The stock's GF Value™ is €18.28, compared to a current price of €28.20 — trading 54.3% above its estimated fair value. The current Return-on-Tangible-Equity is 45.33% and 413.4% above the Software industry median of 8.83. GDS Holdings' overall GF Score™ is 64/100 with 5 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 GDS Holdings (STU:G40), the current Return-on-Tangible-Equity is 45.33% 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 GDS Holdings (STU:G40) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of €28.20 is trading 54.3% above its estimated GF Value™ of €18.28.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for STU:G40:
Return-on-Tangible-Equity: 45.33%
GF Value™: €18.28 vs. price of €28.20 (54.3% above fair value)
Industry Position: 413.4% above the Software median (#1054 of 2477)
No single metric tells the full story. See the STU:G40 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
64GF Score
Get the complete analysis for STU:G40
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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