Eastern BanksharesFRA:EB0 +2.17%60 Return-on-Tangible-Equity is 8.71% as of Mar. 2026, which is 25% above its 10-year median of 6.95. GuruFocus rates FRA:EB0 with a GF Score™ of 60/100 and a GF Value™ of €24.62 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,523 Banks companies, Eastern Bankshares ranks better than 63.16% 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. Eastern Bankshares's annualized net income for the quarter that ended in Mar. 2026 was €225.8 Mil. Eastern Bankshares's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,594.0 Mil. Therefore, Eastern Bankshares's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.71%.
The historical rank and industry rank for Eastern Bankshares's Return-on-Tangible-Equity or its related term are showing as below:
FRA:EB0'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.06 Med: 6.95 Max: 13.25
Current: 13.25
During the past 8 years, Eastern Bankshares's highest Return-on-Tangible-Equity was 13.25%. The lowest was 1.06%. And the median was 6.95%.
FRA:EB0's Return-on-Tangible-Equity is ranked better than 63.16% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs FRA:EB0: 13.25
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.
Eastern Bankshares Return-on-Tangible-Equity Related Terms
Eastern Bankshares Return-on-Tangible-Equity Historical Data
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The historical data trend for Eastern Bankshares'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.
FRA:EB0 vs SFBS, IBOC, FULT: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Eastern Bankshares'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.
Eastern Bankshares Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Eastern Bankshares's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Eastern Bankshares'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 8.71% mean?
Eastern Bankshares (FRA:EB0) has a Return-on-Tangible-Equity of 8.71% 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 Eastern Bankshares and its competitors. This is 25% above median its historical median of 6.95. Over the past decade, Eastern Bankshares' Return-on-Tangible-Equity has ranged from 1.06 to 13.25. According to the industry distribution chart, Eastern Bankshares ranks #561 out of 1523 companies in the Banks industry, placing it in the top 36.8%.
Is Eastern Bankshares' Return-on-Tangible-Equity too high?
Eastern Bankshares' current Return-on-Tangible-Equity of 8.71% is 25% above median its 10-year median of 6.95. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 13.25. The Banks industry median Return-on-Tangible-Equity is 11.20. Eastern Bankshares' value of 8.71% is 22.2% below this industry median. Based on the distribution chart, Eastern Bankshares ranks #561 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Eastern Bankshares has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eastern Bankshares' Return-on-Tangible-Equity compare to SFBS and IBOC?
According to the Banks industry distribution chart, Eastern Bankshares ranks #561 out of 1523 companies for Return-on-Tangible-Equity. This puts Eastern Bankshares in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Eastern Bankshares' value of 8.71% is 22.2% below this benchmark. Historically, Eastern Bankshares' own Return-on-Tangible-Equity has ranged from 1.06 to 13.25 over the past decade. While the company's 10-year median is 6.95 vs. the industry median of 11.20, Eastern Bankshares has consistently been below 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. Eastern Bankshares's current Return-on-Tangible-Equity of 8.71% is 22.2% below 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 Eastern Bankshares 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. Eastern Bankshares's current Return-on-Tangible-Equity is 8.71%, which is 25% above median its own 10-year median of 6.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eastern Bankshares stock overvalued right now?
Based on GuruFocus' analysis, Eastern Bankshares (FRA:EB0) is currently considered Modestly Undervalued. The stock's GF Value™ is €24.62, compared to a current price of €18.80 — trading 23.6% below its estimated fair value. The current Return-on-Tangible-Equity is 8.71%, which is 25% above median its 10-year median of 6.95 and 22.2% below the Banks industry median of 11.20. Eastern Bankshares' overall GF Score™ is 60/100 with 6 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 Eastern Bankshares (FRA:EB0), the current Return-on-Tangible-Equity is 8.71% 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 Eastern Bankshares (FRA:EB0) Overvalued in 2026?
Based on GuruFocus' analysis, Eastern Bankshares stock appears to be undervalued.
The current stock price of €18.80 is trading 23.6% below its estimated GF Value™ of €24.62.
GuruFocus considers Eastern Bankshares to be Modestly Undervalued.
Key valuation signals for FRA:EB0:
Return-on-Tangible-Equity: 8.71% (25% above median its 10-year median of 6.95)
GF Value™: €24.62 vs. price of €18.80 (23.6% below fair value)
Industry Position: 22.2% below the Banks median (#561 of 1523)
No single metric tells the full story. See the FRA:EB0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eastern Bankshares Inc is a commercial bank that caters its products and services to retail, commercial, and small business customers. Its diversified products and services include lending, deposit, wealth management, and insurance products. The company has one operating segment: Banking business, which offers a range of banking, lending, savings, and small business offerings, and its wealth management and trust operations.
60GF Score
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