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. Wearable Devices's annualized net income for the quarter that ended in Dec. 2025 was $-8.78 Mil. Wearable Devices's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $11.18 Mil. Therefore, Wearable Devices's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -78.55%.
The historical rank and industry rank for Wearable Devices's Return-on-Tangible-Equity or its related term are showing as below:
WLDS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -167.89 Med: -110.62 Max: -72.34
Current: -92.74
During the past 7 years, Wearable Devices's highest Return-on-Tangible-Equity was -72.34%. The lowest was -167.89%. And the median was -110.62%.
WLDS's Return-on-Tangible-Equity is ranked worse than 96.51% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs WLDS: -92.74
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.
Wearable Devices Return-on-Tangible-Equity Related Terms
Wearable Devices Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Wearable Devices'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.
WLDS vs BOXL, CAPC, WTO: Return-on-Tangible-Equity Comparison
For the Consumer Electronics subindustry, Wearable Devices'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.
Wearable Devices Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Wearable Devices's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Wearable Devices'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 two times the semi-annual (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 -78.55% mean?
Wearable Devices (WLDS) has a Return-on-Tangible-Equity of -78.55% 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 Wearable Devices and its competitors. According to the industry distribution chart, Wearable Devices ranks #2294 out of 2377 companies in the Hardware industry, placing it in the top 96.5%.
Is Wearable Devices' Return-on-Tangible-Equity too high?
Wearable Devices' current Return-on-Tangible-Equity is -78.55%. Based on the distribution chart, Wearable Devices ranks #2294 out of 2377 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Wearable Devices has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wearable Devices' Return-on-Tangible-Equity compare to BOXL and CAPC?
According to the Hardware industry distribution chart, Wearable Devices ranks #2294 out of 2377 companies for Return-on-Tangible-Equity. This places Wearable Devices in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.27. 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,377 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 Wearable Devices and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wearable Devices's current Return-on-Tangible-Equity is -78.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wearable Devices stock overvalued right now?
Based on GuruFocus' analysis, Wearable Devices (WLDS) is currently considered Possible Value Trap. The stock's GF Value™ is $25.43, compared to a current price of $1.66 — trading 93.5% below its estimated fair value. The current Return-on-Tangible-Equity is -78.55%. Wearable Devices' overall GF Score™ is 47/100 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 Wearable Devices (WLDS), the current Return-on-Tangible-Equity is -78.55% 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 Wearable Devices (WLDS) Overvalued in 2026?
Based on GuruFocus' analysis, Wearable Devices stock appears to be undervalued.
The current stock price of $1.66 is trading 93.5% below its estimated GF Value™ of $25.43.
GuruFocus considers Wearable Devices to be Possible Value Trap.
Key valuation signals for WLDS:
Return-on-Tangible-Equity: -78.55%
GF Value™: $25.43 vs. price of $1.66 (93.5% below fair value)
No single metric tells the full story. See the WLDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wearable Devices Ltd develops and sells human-machine interface solutions for the smart wearables industry. These digital devices include consumer electronics, smart watches, smartphones, AR glasses, VR headsets, televisions, PCs, laptop computers, drones, robots, etc. The company has completed the transition phase from research and development to commercialization of technology into B2B and B2C products. Its products include Mudra Inspire, a band for the Apple Watch that allows touchless operation and control of Apple ecosystem devices such as iPhone, Mac computer, Apple TV, and iPad, inter alia.
47GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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