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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. Sm Entertainment Japan Co's annualized net income for the quarter that ended in Dec. 2025 was 円-340 Mil. Sm Entertainment Japan Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円7,537 Mil. Therefore, Sm Entertainment Japan Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -4.51%.
The historical rank and industry rank for Sm Entertainment Japan Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4772'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -24.69 Med: 0.93 Max: 11.11
Current: 7.96
During the past 13 years, Sm Entertainment Japan Co's highest Return-on-Tangible-Equity was 11.11%. The lowest was -24.69%. And the median was 0.93%.
TSE:4772's Return-on-Tangible-Equity is ranked better than 57.59% of 863
companies
in the Media - Diversified industry
Industry Median: 5.46
vs TSE:4772: 7.96
Sm Entertainment Japan Co (TSE:4772) 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.
Sm Entertainment Japan Co Return-on-Tangible-Equity Related Terms
Sm Entertainment Japan Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sm Entertainment Japan Co'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.
Sm Entertainment Japan Co Return-on-Tangible-Equity Chart
TSE:4772 vs NFLX, DIS, WBD: Return-on-Tangible-Equity Comparison
For the Entertainment subindustry, Sm Entertainment Japan 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.
Sm Entertainment Japan Co Return-on-Tangible-Equity vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sm Entertainment Japan Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sm Entertainment Japan Co'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 (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 -4.51% mean?
Sm Entertainment Japan Co (TSE:4772) has a Return-on-Tangible-Equity of -4.51% 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 Sm Entertainment Japan Co and its competitors. According to the industry distribution chart, Sm Entertainment Japan Co ranks #366 out of 863 companies in the Media - Diversified industry, placing it in the top 42.4%.
Is Sm Entertainment Japan Co's Return-on-Tangible-Equity too high?
Sm Entertainment Japan Co's current Return-on-Tangible-Equity is -4.51%. Based on the distribution chart, Sm Entertainment Japan Co ranks #366 out of 863 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Sm Entertainment Japan Co has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sm Entertainment Japan Co's Return-on-Tangible-Equity compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Sm Entertainment Japan Co ranks #366 out of 863 companies for Return-on-Tangible-Equity. This puts Sm Entertainment Japan Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.46. 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 Media - Diversified company?
The median Return-on-Tangible-Equity among Media - Diversified companies is 5.46, based on 863 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. 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 Sm Entertainment Japan Co and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Equity is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sm Entertainment Japan Co's current Return-on-Tangible-Equity is -4.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sm Entertainment Japan Co stock overvalued right now?
Based on GuruFocus' analysis, Sm Entertainment Japan Co (TSE:4772) is currently considered Significantly Undervalued. The stock's GF Value™ is 円157.83, compared to a current price of 円79.00 — trading 49.9% below its estimated fair value. The current Return-on-Tangible-Equity is -4.51%. Sm Entertainment Japan Co's overall GF Score™ is 52/100 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 Sm Entertainment Japan Co (TSE:4772), the current Return-on-Tangible-Equity is -4.51% 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 Sm Entertainment Japan Co (TSE:4772) Overvalued in 2026?
Based on GuruFocus' analysis, Sm Entertainment Japan Co stock appears to be undervalued.
The current stock price of 円79.00 is trading 49.9% below its estimated GF Value™ of 円157.83.
GuruFocus considers Sm Entertainment Japan Co to be Significantly Undervalued.
Key valuation signals for TSE:4772:
Return-on-Tangible-Equity: -4.51%
GF Value™: 円157.83 vs. price of 円79.00 (49.9% below fair value)
No single metric tells the full story. See the TSE:4772 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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