First HorizonFHN +1.60%68 Return-on-Tangible-Equity is 14.17% as of Mar. 2026, which is 3% above its 10-year median of 13.80. GuruFocus rates FHN with a GF Score™ of 68/100 and a GF Value™ of $21.33 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,523 Banks companies, First Horizon ranks better than 68.88% 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. First Horizon's annualized net income for the quarter that ended in Mar. 2026 was $1,048 Mil. First Horizon's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $7,398 Mil. Therefore, First Horizon's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.17%.
The historical rank and industry rank for First Horizon's Return-on-Tangible-Equity or its related term are showing as below:
FHN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.74 Med: 13.8 Max: 19.41
Current: 14.05
During the past 13 years, First Horizon's highest Return-on-Tangible-Equity was 19.41%. The lowest was 6.74%. And the median was 13.80%.
FHN's Return-on-Tangible-Equity is ranked better than 68.88% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs FHN: 14.05
First Horizon (NYSE:FHN) 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.
First Horizon Return-on-Tangible-Equity Related Terms
First Horizon Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for First Horizon'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.
FHN vs WBS, UMBF, WTFC: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, First Horizon'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.
First Horizon Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, First Horizon's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Horizon'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 14.17% mean?
First Horizon (FHN) has a Return-on-Tangible-Equity of 14.17% 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 First Horizon and its competitors. This is near median its historical median of 13.80. Over the past decade, First Horizon's Return-on-Tangible-Equity has ranged from 6.74 to 19.41. According to the industry distribution chart, First Horizon ranks #474 out of 1523 companies in the Banks industry, placing it in the top 31.1%.
Is First Horizon's Return-on-Tangible-Equity too high?
First Horizon's current Return-on-Tangible-Equity of 14.17% is near median its 10-year median of 13.80. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 19.41. The Banks industry median Return-on-Tangible-Equity is 11.20. First Horizon's value of 14.17% is 26.5% above this industry median. Based on the distribution chart, First Horizon ranks #474 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, First Horizon has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Horizon's Return-on-Tangible-Equity compare to WBS and UMBF?
According to the Banks industry distribution chart, First Horizon ranks #474 out of 1523 companies for Return-on-Tangible-Equity. This puts First Horizon in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. First Horizon's value of 14.17% is 26.5% above this benchmark. Historically, First Horizon's own Return-on-Tangible-Equity has ranged from 6.74 to 19.41 over the past decade. While the company's 10-year median is 13.80 vs. the industry median of 11.20, First Horizon 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 11.20, based on 1,523 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. First Horizon's current Return-on-Tangible-Equity of 14.17% is 26.5% 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 First Horizon and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Horizon's current Return-on-Tangible-Equity is 14.17%, which is near median its own 10-year median of 13.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Horizon stock overvalued right now?
Based on GuruFocus' analysis, First Horizon (FHN) is currently considered Modestly Overvalued. The stock's GF Value™ is $21.33, compared to a current price of $26.05 — trading 22.1% above its estimated fair value. The current Return-on-Tangible-Equity is 14.17%, which is near median its 10-year median of 13.80 and 26.5% above the Banks industry median of 11.20. First Horizon's overall GF Score™ is 68/100 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 First Horizon (FHN), the current Return-on-Tangible-Equity is 14.17% 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 First Horizon (FHN) Overvalued in 2026?
Based on GuruFocus' analysis, First Horizon stock appears to be overvalued.
The current stock price of $26.05 is trading 22.1% above its estimated GF Value™ of $21.33.
GuruFocus considers First Horizon to be Modestly Overvalued.
Key valuation signals for FHN:
Return-on-Tangible-Equity: 14.17% (near median its 10-year median of 13.80)
GF Value™: $21.33 vs. price of $26.05 (22.1% above fair value)
Industry Position: 26.5% above the Banks median (#474 of 1523)
No single metric tells the full story. See the FHN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The company's reportable segments are: Commercial, Consumer & Wealth, Wholesale, and Corporate. The majority of its revenue is generated from Commercial, Consumer & Wealth. The Commercial, Consumer & Wealth segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients in the southern USA and other selected markets. The Wholesale segment delivers industry-specific products and services, while the Corporate segment provides internal support functions like finance, risk, and audit.
68GF Score
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