VtexVTEX +9.78%73 Return-on-Tangible-Equity is 8.18% as of Mar. 2026. GuruFocus rates VTEX with a GF Score™ of 73/100 and a GF Value™ of $7.49 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,472 Software companies, Vtex ranks better than 54.37% 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. Vtex's annualized net income for the quarter that ended in Mar. 2026 was $16.2 Mil. Vtex's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $198.7 Mil. Therefore, Vtex's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.18%.
The historical rank and industry rank for Vtex's Return-on-Tangible-Equity or its related term are showing as below:
VTEX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.18 Med: -6.99 Max: 11.29
Current: 11.29
During the past 8 years, Vtex's highest Return-on-Tangible-Equity was 11.29%. The lowest was -34.18%. And the median was -6.99%.
VTEX's Return-on-Tangible-Equity is ranked better than 54.37% of 2472
companies
in the Software industry
Industry Median: 8.76
vs VTEX: 11.29
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.
Vtex Return-on-Tangible-Equity Related Terms
Vtex Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vtex'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.
VTEX vs PAR, SVMB, MTC: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Vtex'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.
Vtex Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Vtex's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vtex'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 8.18% mean?
Vtex (VTEX) has a Return-on-Tangible-Equity of 8.18% 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 Vtex and its competitors. According to the industry distribution chart, Vtex ranks #1128 out of 2472 companies in the Software industry, placing it in the top 45.6%.
Is Vtex's Return-on-Tangible-Equity too high?
Vtex's current Return-on-Tangible-Equity is 8.18%. The Software industry median Return-on-Tangible-Equity is 8.76. Vtex's value of 8.18% is 6.6% below this industry median. Based on the distribution chart, Vtex ranks #1128 out of 2472 companies in the Software industry, which is above the industry midpoint. Overall, Vtex has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vtex's Return-on-Tangible-Equity compare to PAR and SVMB?
According to the Software industry distribution chart, Vtex ranks #1128 out of 2472 companies for Return-on-Tangible-Equity. This puts Vtex in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.76. Vtex's value of 8.18% is 6.6% below 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 8.76, based on 2,472 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. Vtex's current Return-on-Tangible-Equity of 8.18% is 6.6% below 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 Vtex and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vtex's current Return-on-Tangible-Equity is 8.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vtex stock overvalued right now?
Based on GuruFocus' analysis, Vtex (VTEX) is currently considered Significantly Undervalued. The stock's GF Value™ is $7.49, compared to a current price of $4.04 — trading 46.1% below its estimated fair value. The current Return-on-Tangible-Equity is 8.18% and 6.6% below the Software industry median of 8.76. Vtex's overall GF Score™ is 73/100 with 1 warning sign 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 Vtex (VTEX), the current Return-on-Tangible-Equity is 8.18% 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 Vtex (VTEX) Overvalued in 2026?
Based on GuruFocus' analysis, Vtex stock appears to be undervalued.
The current stock price of $4.04 is trading 46.1% below its estimated GF Value™ of $7.49.
GuruFocus considers Vtex to be Significantly Undervalued.
Key valuation signals for VTEX:
Return-on-Tangible-Equity: 8.18%
GF Value™: $7.49 vs. price of $4.04 (46.1% below fair value)
Industry Position: 6.6% below the Software median (#1128 of 2472)
No single metric tells the full story. See the VTEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vtex provides a software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce plan, including building online stores, integrating and managing orders across channels, and creating marketplaces to sell products from third-party vendors. The VTEX platform is designed to be composable and complete, enabling its customers to seamlessly implement, optimize, test, and expand both B2C and B2B digital experiences. It generates maximum revenues from Brazil followed by Latin America and the rest of the world.
73GF Score
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