Yalla GroupYALA +1.12%76 Return-on-Tangible-Equity is 14.07% as of Mar. 2026, which is 37% below its 10-year median of 22.35. GuruFocus rates YALA with a GF Score™ of 76/100 and a GF Value™ of $5.72 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,466 Software companies, Yalla Group ranks better than 65.61% 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. Yalla Group's annualized net income for the quarter that ended in Mar. 2026 was $115.7 Mil. Yalla Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $822.3 Mil. Therefore, Yalla Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.07%.
The historical rank and industry rank for Yalla Group's Return-on-Tangible-Equity or its related term are showing as below:
YALA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.3 Med: 22.35 Max: 120.17
Current: 18.12
During the past 8 years, Yalla Group's highest Return-on-Tangible-Equity was 120.17%. The lowest was 2.30%. And the median was 22.35%.
YALA's Return-on-Tangible-Equity is ranked better than 65.61% of 2466
companies
in the Software industry
Industry Median: 8.67
vs YALA: 18.12
Yalla Group (NYSE:YALA) 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.
Yalla Group Return-on-Tangible-Equity Related Terms
Yalla Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Yalla Group'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.
YALA vs GTM, RDVT, MITK: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Yalla Group'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.
Yalla Group Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Yalla Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Yalla Group'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 14.07% mean?
Yalla Group (YALA) has a Return-on-Tangible-Equity of 14.07% 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 Yalla Group and its competitors. This is 37% below median its historical median of 22.35. Over the past decade, Yalla Group's Return-on-Tangible-Equity has ranged from 2.30 to 120.17. According to the industry distribution chart, Yalla Group ranks #848 out of 2466 companies in the Software industry, placing it in the top 34.4%.
Is Yalla Group's Return-on-Tangible-Equity too high?
Yalla Group's current Return-on-Tangible-Equity of 14.07% is 37% below median its 10-year median of 22.35. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 120.17. The Software industry median Return-on-Tangible-Equity is 8.67. Yalla Group's value of 14.07% is 62.3% above this industry median. Based on the distribution chart, Yalla Group ranks #848 out of 2466 companies in the Software industry, which is above the industry midpoint. Overall, Yalla Group has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yalla Group's Return-on-Tangible-Equity compare to GTM and RDVT?
According to the Software industry distribution chart, Yalla Group ranks #848 out of 2466 companies for Return-on-Tangible-Equity. This puts Yalla Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.67. Yalla Group's value of 14.07% is 62.3% above this benchmark. Historically, Yalla Group's own Return-on-Tangible-Equity has ranged from 2.30 to 120.17 over the past decade. While the company's 10-year median is 22.35 vs. the industry median of 8.67, Yalla Group 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 8.67, based on 2,466 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. Yalla Group's current Return-on-Tangible-Equity of 14.07% is 62.3% 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 Yalla Group and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yalla Group's current Return-on-Tangible-Equity is 14.07%, which is 37% below median its own 10-year median of 22.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yalla Group stock overvalued right now?
Based on GuruFocus' analysis, Yalla Group (YALA) is currently considered Fairly Valued. The stock's GF Value™ is $5.72, compared to a current price of $5.41 — trading 5.4% below its estimated fair value. The current Return-on-Tangible-Equity is 14.07%, which is 37% below median its 10-year median of 22.35 and 62.3% above the Software industry median of 8.67. Yalla Group's overall GF Score™ is 76/100 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 Yalla Group (YALA), the current Return-on-Tangible-Equity is 14.07% 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 Yalla Group (YALA) Overvalued in 2026?
Based on GuruFocus' analysis, Yalla Group stock appears to be undervalued.
The current stock price of $5.41 is trading 5.4% below its estimated GF Value™ of $5.72.
GuruFocus considers Yalla Group to be Fairly Valued.
Key valuation signals for YALA:
Return-on-Tangible-Equity: 14.07% (37% below median its 10-year median of 22.35)
GF Value™: $5.72 vs. price of $5.41 (5.4% below fair value)
Industry Position: 62.3% above the Software median (#848 of 2466)
No single metric tells the full story. See the YALA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yalla Group Ltd is a MENA-based online social networking and gaming company. It operates two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games popular in MENA, with in-game voice chat and localized majlis functions. The group has one operating segment, which is the social networking and entertainment platform.
76GF Score
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