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. Workday's annualized net income for the quarter that ended in Apr. 2026 was CHF888 Mil. Workday's average shareholder tangible equity for the quarter that ended in Apr. 2026 was CHF1,353 Mil. Therefore, Workday's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 65.66%.
The historical rank and industry rank for Workday's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:WDAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -163.85 Med: -23.07 Max: 37.35
Current: 24.66
During the past 13 years, Workday's highest Return-on-Tangible-Equity was 37.35%. The lowest was -163.85%. And the median was -23.07%.
XSWX:WDAY's Return-on-Tangible-Equity is ranked better than 71.82% of 2470
companies
in the Software industry
Industry Median: 8.77
vs XSWX:WDAY: 24.66
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.
Workday Return-on-Tangible-Equity Related Terms
Workday Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Workday'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.
XSWX:WDAY vs : Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Workday'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.
Workday Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Workday's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Workday'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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 65.66% mean?
Workday (XSWX:WDAY) has a Return-on-Tangible-Equity of 65.66% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Workday and its competitors. According to the industry distribution chart, Workday ranks #696 out of 2470 companies in the Software industry, placing it in the top 28.2%.
Is Workday's Return-on-Tangible-Equity too high?
Workday's current Return-on-Tangible-Equity is 65.66%. The Software industry median Return-on-Tangible-Equity is 8.77. Workday's value of 65.66% is 648.7% above this industry median. Based on the distribution chart, Workday ranks #696 out of 2470 companies in the Software industry, which is above the industry midpoint. Overall, Workday has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Workday's Return-on-Tangible-Equity compare to ?
According to the Software industry distribution chart, Workday ranks #696 out of 2470 companies for Return-on-Tangible-Equity. This puts Workday in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.77. Workday's value of 65.66% is 648.7% above 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 8.77, based on 2,470 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. Workday's current Return-on-Tangible-Equity of 65.66% is 648.7% 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 Workday and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Workday's current Return-on-Tangible-Equity is 65.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Workday stock overvalued right now?
Workday (XSWX:WDAY) has a current Return-on-Tangible-Equity of 65.66%. The stock's GF Value™ is CHF242.94, compared to a current price of CHF106.52 — trading 56.2% below its estimated fair value. The current Return-on-Tangible-Equity is 65.66% and 648.7% above the Software industry median of 8.77. Workday's overall GF Score™ is 70/100 with 3 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 Workday (XSWX:WDAY), the current Return-on-Tangible-Equity is 65.66% as of Apr. 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 Workday (XSWX:WDAY) Overvalued in 2026?
Based on GuruFocus' analysis, Workday stock appears to be undervalued.
The current stock price of CHF106.52 is trading 56.2% below its estimated GF Value™ of CHF242.94.
Key valuation signals for XSWX:WDAY:
Return-on-Tangible-Equity: 65.66%
GF Value™: CHF242.94 vs. price of CHF106.52 (56.2% below fair value)
Industry Position: 648.7% above the Software median (#696 of 2470)
No single metric tells the full story. See the XSWX:WDAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Workday is a software company that offers human capital management, financial management, and business planning solutions for enterprises. Known for being a cloud-only software provider, Workday was founded in 2005 and is headquartered in Pleasanton, California.
70GF Score
Get the complete analysis for XSWX:WDAY
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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