Starwood Property TrustFRA:VSP +0.66%47 Return-on-Tangible-Equity is 3.46% as of Mar. 2026, which is 62% below its 10-year median of 9.11. GuruFocus rates FRA:VSP with a GF Score™ of 47/100 and a GF Value™ of €12.37 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 935 REITs companies, Starwood Property Trust ranks worse than 54.44% 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. Starwood Property Trust's annualized net income for the quarter that ended in Mar. 2026 was €179.5 Mil. Starwood Property Trust's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5,190.4 Mil. Therefore, Starwood Property Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.46%.
The historical rank and industry rank for Starwood Property Trust's Return-on-Tangible-Equity or its related term are showing as below:
FRA:VSP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.63 Med: 9.11 Max: 14.67
Current: 5.77
During the past 13 years, Starwood Property Trust's highest Return-on-Tangible-Equity was 14.67%. The lowest was 5.63%. And the median was 9.11%.
FRA:VSP's Return-on-Tangible-Equity is ranked worse than 54.44% of 935
companies
in the REITs industry
Industry Median: 6.23
vs FRA:VSP: 5.77
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.
Starwood Property Trust Return-on-Tangible-Equity Related Terms
Starwood Property Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Starwood Property Trust'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:VSP vs RITM, BXMT, DX: Return-on-Tangible-Equity Comparison
For the REIT - Mortgage subindustry, Starwood Property Trust'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.
Starwood Property Trust Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Starwood Property Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Starwood Property Trust'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 3.46% mean?
Starwood Property Trust (FRA:VSP) has a Return-on-Tangible-Equity of 3.46% 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 Starwood Property Trust and its competitors. This is 62% below median its historical median of 9.11. Over the past decade, Starwood Property Trust's Return-on-Tangible-Equity has ranged from 5.63 to 14.67. According to the industry distribution chart, Starwood Property Trust ranks #509 out of 935 companies in the REITs industry, placing it in the top 54.4%.
Is Starwood Property Trust's Return-on-Tangible-Equity too high?
Starwood Property Trust's current Return-on-Tangible-Equity of 3.46% is 62% below median its 10-year median of 9.11. Over the past 10 years, this metric has ranged from a low of 5.63 to a high of 14.67. The REITs industry median Return-on-Tangible-Equity is 6.23. Starwood Property Trust's value of 3.46% is 44.5% below this industry median. Based on the distribution chart, Starwood Property Trust ranks #509 out of 935 companies in the REITs industry, which is below the industry midpoint. Overall, Starwood Property Trust has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Starwood Property Trust's Return-on-Tangible-Equity compare to RITM and BXMT?
According to the REITs industry distribution chart, Starwood Property Trust ranks #509 out of 935 companies for Return-on-Tangible-Equity. This places Starwood Property Trust in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.23. Starwood Property Trust's value of 3.46% is 44.5% below this benchmark. Historically, Starwood Property Trust's own Return-on-Tangible-Equity has ranged from 5.63 to 14.67 over the past decade. While the company's 10-year median is 9.11 vs. the industry median of 6.23, Starwood Property Trust 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 REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.23, based on 935 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. Starwood Property Trust's current Return-on-Tangible-Equity of 3.46% is 44.5% 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 Starwood Property Trust and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starwood Property Trust's current Return-on-Tangible-Equity is 3.46%, which is 62% below median its own 10-year median of 9.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starwood Property Trust stock overvalued right now?
Based on GuruFocus' analysis, Starwood Property Trust (FRA:VSP) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.37, compared to a current price of €14.52 — trading 17.3% above its estimated fair value. The current Return-on-Tangible-Equity is 3.46%, which is 62% below median its 10-year median of 9.11 and 44.5% below the REITs industry median of 6.23. Starwood Property Trust's overall GF Score™ is 47/100 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 Starwood Property Trust (FRA:VSP), the current Return-on-Tangible-Equity is 3.46% 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 Starwood Property Trust (FRA:VSP) Overvalued in 2026?
Based on GuruFocus' analysis, Starwood Property Trust stock appears to be overvalued.
The current stock price of €14.52 is trading 17.3% above its estimated GF Value™ of €12.37.
GuruFocus considers Starwood Property Trust to be Modestly Overvalued.
Key valuation signals for FRA:VSP:
Return-on-Tangible-Equity: 3.46% (62% below median its 10-year median of 9.11)
GF Value™: €12.37 vs. price of €14.52 (17.3% above fair value)
Industry Position: 44.5% below the REITs median (#509 of 935)
No single metric tells the full story. See the FRA:VSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Starwood Property Trust Inc is a real estate investment trust principally engaged in originating, acquiring, and managing commercial mortgage loans, commercial mortgage-backed securities, and other real estate investments in the U.S., Australia, and Europe. The company has four reportable business segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The majority of its revenue is generated from the Commercial and Residential Lending segment, which engages mainly in originating, acquiring, financing, and managing commercial first mortgages, non-agency residential mortgages (residential loans), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), and other real estate and related debt investments.
47GF Score
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