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Digital ArtsTSE:2326 -0.50%85 Return-on-Tangible-Equity is 27.55% as of Mar. 2026, which is 1% above its 10-year median of 27.32. GuruFocus rates TSE:2326 with a GF Score™ of 85/100 and a GF Value™ of 円6,130.60 (Significantly Undervalued). Among 2,480 Software companies, Digital Arts ranks better than 68.95% 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. Digital Arts's annualized net income for the quarter that ended in Mar. 2026 was 円4,396 Mil. Digital Arts's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円15,955 Mil. Therefore, Digital Arts's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 27.55%.
The historical rank and industry rank for Digital Arts's Return-on-Tangible-Equity or its related term are showing as below:
TSE:2326'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.24 Med: 27.32 Max: 34.65
Current: 21.83
During the past 13 years, Digital Arts's highest Return-on-Tangible-Equity was 34.65%. The lowest was 21.24%. And the median was 27.32%.
TSE:2326's Return-on-Tangible-Equity is ranked better than 68.95% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:2326: 21.83
Digital Arts (TSE:2326) 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.
Digital Arts Return-on-Tangible-Equity Related Terms
Digital Arts Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Digital Arts'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.
TSE:2326 vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Digital Arts'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.
Digital Arts Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Digital Arts's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Digital Arts'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 27.55% mean?
Digital Arts (TSE:2326) has a Return-on-Tangible-Equity of 27.55% 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 Digital Arts and its competitors. This is near median its historical median of 27.32. Over the past decade, Digital Arts' Return-on-Tangible-Equity has ranged from 21.24 to 34.65. According to the industry distribution chart, Digital Arts ranks #770 out of 2480 companies in the Software industry, placing it in the top 31%.
Is Digital Arts' Return-on-Tangible-Equity too high?
Digital Arts' current Return-on-Tangible-Equity of 27.55% is near median its 10-year median of 27.32. Over the past 10 years, this metric has ranged from a low of 21.24 to a high of 34.65. The Software industry median Return-on-Tangible-Equity is 8.85. Digital Arts' value of 27.55% is 211.5% above this industry median. Based on the distribution chart, Digital Arts ranks #770 out of 2480 companies in the Software industry, which is above the industry midpoint. Overall, Digital Arts has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #770 out of 2480 companies for Return-on-Tangible-Equity. This puts Digital Arts in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.85. Digital Arts' value of 27.55% is 211.5% above this benchmark. Historically, Digital Arts' own Return-on-Tangible-Equity has ranged from 21.24 to 34.65 over the past decade. While the company's 10-year median is 27.32 vs. the industry median of 8.85, Digital Arts 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 8.85, based on 2,480 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. Digital Arts's current Return-on-Tangible-Equity of 27.55% is 211.5% 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 Digital Arts and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Arts's current Return-on-Tangible-Equity is 27.55%, which is near median its own 10-year median of 27.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,130.60, compared to a current price of 円3,995.00 — trading 34.8% below its estimated fair value. The current Return-on-Tangible-Equity is 27.55%, which is near median its 10-year median of 27.32 and 211.5% above the Software industry median of 8.85. Digital Arts' overall GF Score™ is 85/100. 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 Digital Arts (TSE:2326), the current Return-on-Tangible-Equity is 27.55% 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 Digital Arts (TSE:2326) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued.
The current stock price of 円3,995.00 is trading 34.8% below its estimated GF Value™ of 円6,130.60.
GuruFocus considers Digital Arts to be Significantly Undervalued.
Key valuation signals for TSE:2326:
Return-on-Tangible-Equity: 27.55% (near median its 10-year median of 27.32)
GF Value™: 円6,130.60 vs. price of 円3,995.00 (34.8% below fair value)
Industry Position: 211.5% above the Software median (#770 of 2480)
No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
85GF Score
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