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Prospect CapitalFRA:RK8 -1.34%19 Return-on-Tangible-Equity is 7.69% as of Mar. 2026, which is 35% above its 10-year median of 5.68. GuruFocus rates FRA:RK8 with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 1,589 Asset Management companies, Prospect Capital ranks worse than 79.86% 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. Prospect Capital's annualized net income for the quarter that ended in Mar. 2026 was €195.42 Mil. Prospect Capital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,540.83 Mil. Therefore, Prospect Capital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.69%.
The historical rank and industry rank for Prospect Capital's Return-on-Tangible-Equity or its related term are showing as below:
FRA:RK8'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -14.03 Med: 5.68 Max: 27.53
Current: -1.25
During the past 13 years, Prospect Capital's highest Return-on-Tangible-Equity was 27.53%. The lowest was -14.03%. And the median was 5.68%.
FRA:RK8's Return-on-Tangible-Equity is ranked worse than 79.86% of 1589
companies
in the Asset Management industry
Industry Median: 7.21
vs FRA:RK8: -1.25
Prospect Capital (FRA:RK8) 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.
Prospect Capital Return-on-Tangible-Equity Related Terms
Prospect Capital Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Prospect Capital'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:RK8 vs FRBP, CRF, EOS: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Prospect Capital'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.
Prospect Capital Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Prospect Capital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Prospect Capital'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 7.69% mean?
Prospect Capital (FRA:RK8) has a Return-on-Tangible-Equity of 7.69% 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 Prospect Capital and its competitors. This is 35% above median its historical median of 5.68. According to the industry distribution chart, Prospect Capital ranks #1269 out of 1589 companies in the Asset Management industry, placing it in the top 79.9%.
Is Prospect Capital's Return-on-Tangible-Equity too high?
Prospect Capital's current Return-on-Tangible-Equity of 7.69% is 35% above median its 10-year median of 5.68. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Prospect Capital's value of 7.69% is 6.7% above this industry median. Based on the distribution chart, Prospect Capital ranks #1269 out of 1589 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Prospect Capital has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Prospect Capital's Return-on-Tangible-Equity compare to FRBP and CRF?
According to the Asset Management industry distribution chart, Prospect Capital ranks #1269 out of 1589 companies for Return-on-Tangible-Equity. This places Prospect Capital in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Prospect Capital's value of 7.69% is 6.7% above this benchmark. While the company's 10-year median is 5.68 vs. the industry median of 7.21, Prospect Capital 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,589 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. Prospect Capital's current Return-on-Tangible-Equity of 7.69% is 6.7% 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 Prospect Capital and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prospect Capital's current Return-on-Tangible-Equity is 7.69%, which is 35% above median its own 10-year median of 5.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Capital stock overvalued right now?
Prospect Capital (FRA:RK8) has a current Return-on-Tangible-Equity of 7.69%. The current Return-on-Tangible-Equity is 7.69%, which is 35% above median its 10-year median of 5.68 and 6.7% above the Asset Management industry median of 7.21. Prospect Capital's overall GF Score™ is 19/100 with 1 warning sign 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 Prospect Capital (FRA:RK8), the current Return-on-Tangible-Equity is 7.69% 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.
Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests mainly in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.
19GF Score
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