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GMO internetTSE:4784 +1.63%53 Return-on-Tangible-Equity is 62.50% as of Dec. 2025, which is 1079% above its 10-year median of 5.30. GuruFocus rates TSE:4784 with a GF Score™ of 53/100 and a GF Value™ of 円159.72 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,486 Software companies, GMO internet ranks better than 84.75% 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. GMO internet's annualized net income for the quarter that ended in Dec. 2025 was 円6,200 Mil. GMO internet's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円9,921 Mil. Therefore, GMO internet's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 62.50%.
The historical rank and industry rank for GMO internet's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4784'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.61 Med: 5.3 Max: 73.93
Current: 61.53
During the past 13 years, GMO internet's highest Return-on-Tangible-Equity was 73.93%. The lowest was -0.61%. And the median was 5.30%.
TSE:4784's Return-on-Tangible-Equity is ranked better than 84.75% of 2486
companies
in the Software industry
Industry Median: 9
vs TSE:4784: 61.53
GMO internet (TSE:4784) 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.
GMO internet Return-on-Tangible-Equity Related Terms
GMO internet Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GMO internet'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:4784 vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, GMO internet'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.
GMO internet Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, GMO internet's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GMO internet'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 62.50% mean?
GMO internet (TSE:4784) has a Return-on-Tangible-Equity of 62.50% 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 GMO internet and its competitors. This is 1079% above median its historical median of 5.30. According to the industry distribution chart, GMO internet ranks #379 out of 2486 companies in the Software industry, placing it in the top 15.2%.
Is GMO internet's Return-on-Tangible-Equity too high?
GMO internet's current Return-on-Tangible-Equity of 62.50% is 1079% above median its 10-year median of 5.30. The Software industry median Return-on-Tangible-Equity is 9.00. GMO internet's value of 62.50% is 594.4% above this industry median. Based on the distribution chart, GMO internet ranks #379 out of 2486 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GMO internet has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMO internet's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, GMO internet ranks #379 out of 2486 companies for Return-on-Tangible-Equity. This places GMO internet in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.00. GMO internet's value of 62.50% is 594.4% above this benchmark. While the company's 10-year median is 5.30 vs. the industry median of 9.00, GMO internet 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 9.00, based on 2,486 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. GMO internet's current Return-on-Tangible-Equity of 62.50% is 594.4% 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 GMO internet and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO internet's current Return-on-Tangible-Equity is 62.50%, which is 1079% above median its own 10-year median of 5.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO internet stock overvalued right now?
Based on GuruFocus' analysis, GMO internet (TSE:4784) is currently considered Significantly Overvalued. The stock's GF Value™ is 円159.72, compared to a current price of 円560.00 — trading 250.6% above its estimated fair value. The current Return-on-Tangible-Equity is 62.50%, which is 1079% above median its 10-year median of 5.30 and 594.4% above the Software industry median of 9.00. GMO internet's overall GF Score™ is 53/100 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 GMO internet (TSE:4784), the current Return-on-Tangible-Equity is 62.50% 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 GMO internet (TSE:4784) Overvalued in 2026?
Based on GuruFocus' analysis, GMO internet stock appears to be overvalued.
The current stock price of 円560.00 is trading 250.6% above its estimated GF Value™ of 円159.72.
GuruFocus considers GMO internet to be Significantly Overvalued.
Key valuation signals for TSE:4784:
Return-on-Tangible-Equity: 62.50% (1079% above median its 10-year median of 5.30)
GF Value™: 円159.72 vs. price of 円560.00 (250.6% above fair value)
Industry Position: 594.4% above the Software median (#379 of 2486)
No single metric tells the full story. See the TSE:4784 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO internet Inc Internet infrastructure business and Internet advertising and media business that includes Domain business, Cloud hosting business, Access (provider) business Media/AdTech Business, Data Technology Business, Agency Business, and Solutions businesses.
53GF Score
Get the complete analysis for TSE:4784
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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