Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ESAF Small Finance BankBOM:544020 -0.59%49 Return-on-Tangible-Equity is 17.93% as of Jun. 2026, which is 111% above its 10-year median of 8.49. GuruFocus rates BOM:544020 with a GF Score™ of 49/100 and a GF Value™ of ₹36.65 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,522 Banks companies, ESAF Small Finance Bank ranks worse than 95.93% 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. ESAF Small Finance Bank's annualized net income for the quarter that ended in Jun. 2026 was ₹3,203 Mil. ESAF Small Finance Bank's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹17,865 Mil. Therefore, ESAF Small Finance Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 17.93%.
The historical rank and industry rank for ESAF Small Finance Bank's Return-on-Tangible-Equity or its related term are showing as below:
BOM:544020'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -23.48 Med: 8.49 Max: 20.23
Current: -0.28
During the past 10 years, ESAF Small Finance Bank's highest Return-on-Tangible-Equity was 20.23%. The lowest was -23.48%. And the median was 8.49%.
BOM:544020's Return-on-Tangible-Equity is ranked worse than 95.93% of 1522
companies
in the Banks industry
Industry Median: 11.395
vs BOM:544020: -0.28
ESAF Small Finance Bank (BOM:544020) 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.
ESAF Small Finance Bank Return-on-Tangible-Equity Related Terms
ESAF Small Finance Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ESAF Small Finance Bank'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.
ESAF Small Finance Bank Return-on-Tangible-Equity Chart
ESAF Small Finance Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, ESAF Small Finance Bank'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.
ESAF Small Finance Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, ESAF Small Finance Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ESAF Small Finance Bank'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.93% mean?
ESAF Small Finance Bank (BOM:544020) has a Return-on-Tangible-Equity of 17.93% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ESAF Small Finance Bank and its competitors. This is 111% above median its historical median of 8.49. According to the industry distribution chart, ESAF Small Finance Bank ranks #1460 out of 1522 companies in the Banks industry, placing it in the top 95.9%.
Is ESAF Small Finance Bank's Return-on-Tangible-Equity too high?
ESAF Small Finance Bank's current Return-on-Tangible-Equity of 17.93% is 111% above median its 10-year median of 8.49. The Banks industry median Return-on-Tangible-Equity is 11.40. ESAF Small Finance Bank's value of 17.93% is 57.3% above this industry median. Based on the distribution chart, ESAF Small Finance Bank ranks #1460 out of 1522 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, ESAF Small Finance Bank has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESAF Small Finance Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, ESAF Small Finance Bank ranks #1460 out of 1522 companies for Return-on-Tangible-Equity. This places ESAF Small Finance Bank in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.40. ESAF Small Finance Bank's value of 17.93% is 57.3% above this benchmark. While the company's 10-year median is 8.49 vs. the industry median of 11.40, ESAF Small Finance Bank 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.40, based on 1,522 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. ESAF Small Finance Bank's current Return-on-Tangible-Equity of 17.93% is 57.3% 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 ESAF Small Finance Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESAF Small Finance Bank's current Return-on-Tangible-Equity is 17.93%, which is 111% above median its own 10-year median of 8.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESAF Small Finance Bank stock overvalued right now?
Based on GuruFocus' analysis, ESAF Small Finance Bank (BOM:544020) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹36.65, compared to a current price of ₹41.79 — trading 14% above its estimated fair value. The current Return-on-Tangible-Equity is 17.93%, which is 111% above median its 10-year median of 8.49 and 57.3% above the Banks industry median of 11.40. ESAF Small Finance Bank's overall GF Score™ is 49/100 with 4 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 ESAF Small Finance Bank (BOM:544020), the current Return-on-Tangible-Equity is 17.93% as of Jun. 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 ESAF Small Finance Bank (BOM:544020) Overvalued in 2026?
Based on GuruFocus' analysis, ESAF Small Finance Bank stock appears to be overvalued.
The current stock price of ₹41.79 is trading 14% above its estimated GF Value™ of ₹36.65.
GuruFocus considers ESAF Small Finance Bank to be Modestly Overvalued.
Key valuation signals for BOM:544020:
Return-on-Tangible-Equity: 17.93% (111% above median its 10-year median of 8.49)
GF Value™: ₹36.65 vs. price of ₹41.79 (14% above fair value)
Industry Position: 57.3% above the Banks median (#1460 of 1522)
No single metric tells the full story. See the BOM:544020 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESAF Small Finance Bank Ltd is one of the dominant small finance banks in India in terms of client base size, the yield on advances, Net Interest Margin, assets under management CAGR, total deposit CAGR, loan portfolio concentration in rural and semi-urban areas, and the ratio of microloan advances to gross advances. It delivers its products and services through its business correspondents, customer service centers (which are operated by its business correspondents), Branches, banking agents, ATMs, ATM cum debit cards, mobile banking platforms, SMS alerts, internet banking portals, & unified payment interface facilities. It has business segments, segregating them into Treasury, Wholesale Banking, Retail Banking, & Other Banking Operations. The majority of revenue comes from Retail Banking.
49GF Score
Get the complete analysis for BOM:544020
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:544020 has been successfully added to your 
