Tera SoftwareNSE:TERASOFT +0.72%74 ROA % is 8.88% as of Mar. 2026, which is 367% above its 10-year median of 1.90. GuruFocus rates NSE:TERASOFT with a GF Score™ of 74/100 and a GF Value™ of ₹325.89 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,881 Software companies, Tera Software ranks better than 79.1% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tera Software's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹289 Mil.
Tera Software's average Total Assets over the quarter that ended in Mar. 2026 was ₹3,251 Mil. Therefore, Tera Software's annualized ROA % for the quarter that ended in Mar. 2026 was 8.88%.
The historical rank and industry rank for Tera Software's ROA % or its related term are showing as below:
NSE:TERASOFT'
s ROA % Range Over the Past 10 Years
Min: -0.45 Med: 1.9 Max: 9.21
Current: 8.98
During the past 13 years, Tera Software's highest ROA % was 9.21%. The lowest was -0.45%. And the median was 1.90%.
NSE:TERASOFT's ROA % is ranked better than 79.1% of 2881
companies
in the Software industry
Industry Median: 1.65
vs NSE:TERASOFT: 8.98
Tera Software (NSE:TERASOFT) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Tera Software ROA % Related Terms
Tera Software ROA % Historical Data
* Premium members only.
The historical data trend for Tera Software's ROA % 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.
For the Information Technology Services subindustry, Tera Software's ROA %, along with its competitors' market caps and ROA % 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.
Tera Software ROA % vs Software Industry
For the Software industry and Technology sector, Tera Software's ROA % distribution charts can be found below:
* The bar in red indicates where Tera Software's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Tera Software (NSE:TERASOFT) has a ROA % of 8.88% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tera Software and its competitors. This is 367% above median its historical median of 1.90. According to the industry distribution chart, Tera Software ranks #602 out of 2881 companies in the Software industry, placing it in the top 20.9%.
Is Tera Software's ROA % too high?
Tera Software's current ROA % of 8.88% is 367% above median its 10-year median of 1.90. The Software industry median ROA % is 1.65. Tera Software's value of 8.88% is 438.2% above this industry median. Based on the distribution chart, Tera Software ranks #602 out of 2881 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tera Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #602 out of 2881 companies for ROA %. This places Tera Software in the top 21% of its industry — outperforming the majority of peers. The industry median ROA % is 1.65. Tera Software's value of 8.88% is 438.2% above this benchmark. While the company's 10-year median is 1.90 vs. the industry median of 1.65, Tera Software 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 ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,881 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tera Software's current ROA % of 8.88% is 438.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tera Software and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current ROA % is 8.88%, which is 367% above median its own 10-year median of 1.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹325.89, compared to a current price of ₹411.50 — trading 26.3% above its estimated fair value. The current ROA % is 8.88%, which is 367% above median its 10-year median of 1.90 and 438.2% above the Software industry median of 1.65. Tera Software's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Tera Software (NSE:TERASOFT), the current ROA % is 8.88% 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be overvalued.
The current stock price of ₹411.50 is trading 26.3% above its estimated GF Value™ of ₹325.89.
GuruFocus considers Tera Software to be Modestly Overvalued.
Key valuation signals for NSE:TERASOFT:
ROA %: 8.88% (367% above median its 10-year median of 1.90)
GF Value™: ₹325.89 vs. price of ₹411.50 (26.3% above fair value)
Industry Position: 438.2% above the Software median (#602 of 2881)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
74GF Score
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