German American BancorpFRA:GAB +0.50%61 Return-on-Tangible-Equity is 17.55% as of Mar. 2026, which is 12% above its 10-year median of 15.68. GuruFocus rates FRA:GAB with a GF Score™ of 61/100 and a GF Value™ of €36.97 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,522 Banks companies, German American Bancorp ranks better than 88.11% 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. German American Bancorp's annualized net income for the quarter that ended in Mar. 2026 was €114.7 Mil. German American Bancorp's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €653.6 Mil. Therefore, German American Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.55%.
The historical rank and industry rank for German American Bancorp's Return-on-Tangible-Equity or its related term are showing as below:
FRA:GAB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.33 Med: 15.68 Max: 20.32
Current: 19.28
During the past 13 years, German American Bancorp's highest Return-on-Tangible-Equity was 20.32%. The lowest was 13.33%. And the median was 15.68%.
FRA:GAB's Return-on-Tangible-Equity is ranked better than 88.11% of 1522
companies
in the Banks industry
Industry Median: 11.19
vs FRA:GAB: 19.28
German American Bancorp (FRA:GAB) 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.
German American Bancorp Return-on-Tangible-Equity Related Terms
German American Bancorp Return-on-Tangible-Equity Historical Data
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The historical data trend for German American Bancorp'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.
German American Bancorp Return-on-Tangible-Equity Chart
FRA:GAB vs FSUN, DCOM, STBA: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, German American Bancorp'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.
German American Bancorp Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, German American Bancorp's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where German American Bancorp'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 17.55% mean?
German American Bancorp (FRA:GAB) has a Return-on-Tangible-Equity of 17.55% 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 German American Bancorp and its competitors. This is 12% above median its historical median of 15.68. Over the past decade, German American Bancorp's Return-on-Tangible-Equity has ranged from 13.33 to 20.32. According to the industry distribution chart, German American Bancorp ranks #181 out of 1522 companies in the Banks industry, placing it in the top 11.9%.
Is German American Bancorp's Return-on-Tangible-Equity too high?
German American Bancorp's current Return-on-Tangible-Equity of 17.55% is 12% above median its 10-year median of 15.68. Over the past 10 years, this metric has ranged from a low of 13.33 to a high of 20.32. The Banks industry median Return-on-Tangible-Equity is 11.19. German American Bancorp's value of 17.55% is 56.8% above this industry median. Based on the distribution chart, German American Bancorp ranks #181 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, German American Bancorp has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does German American Bancorp's Return-on-Tangible-Equity compare to FSUN and DCOM?
According to the Banks industry distribution chart, German American Bancorp ranks #181 out of 1522 companies for Return-on-Tangible-Equity. This places German American Bancorp in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.19. German American Bancorp's value of 17.55% is 56.8% above this benchmark. Historically, German American Bancorp's own Return-on-Tangible-Equity has ranged from 13.33 to 20.32 over the past decade. While the company's 10-year median is 15.68 vs. the industry median of 11.19, German American Bancorp 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 11.19, 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. German American Bancorp's current Return-on-Tangible-Equity of 17.55% is 56.8% 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 German American Bancorp and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. German American Bancorp's current Return-on-Tangible-Equity is 17.55%, which is 12% above median its own 10-year median of 15.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is German American Bancorp stock overvalued right now?
Based on GuruFocus' analysis, German American Bancorp (FRA:GAB) is currently considered Fairly Valued. The stock's GF Value™ is €36.97, compared to a current price of €40.40 — trading 9.3% above its estimated fair value. The current Return-on-Tangible-Equity is 17.55%, which is 12% above median its 10-year median of 15.68 and 56.8% above the Banks industry median of 11.19. German American Bancorp's overall GF Score™ is 61/100 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 German American Bancorp (FRA:GAB), the current Return-on-Tangible-Equity is 17.55% 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 German American Bancorp (FRA:GAB) Overvalued in 2026?
Based on GuruFocus' analysis, German American Bancorp stock appears to be overvalued.
The current stock price of €40.40 is trading 9.3% above its estimated GF Value™ of €36.97.
GuruFocus considers German American Bancorp to be Fairly Valued.
Key valuation signals for FRA:GAB:
Return-on-Tangible-Equity: 17.55% (12% above median its 10-year median of 15.68)
GF Value™: €36.97 vs. price of €40.40 (9.3% above fair value)
Industry Position: 56.8% above the Banks median (#181 of 1522)
No single metric tells the full story. See the FRA:GAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
German American Bancorp Inc is a bank holding company. The lines of business include the core banking segment and the wealth management segment. The core banking segment involves attracting deposits from the general public and using those funds to originate consumer, commercial, and agricultural real estate, and residential mortgage loans. These core banking activities also include the sale of residential mortgage loans in the secondary market. Wealth management services, which involve providing trust, investment advisory, brokerage, and retirement planning services to customers. The company generates the majority of its revenue from the core banking segment.
61GF Score
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