GDL FundGDL -0.05%61 Return-on-Tangible-Equity is 6.60% as of Dec. 2025, which is 203% above its 10-year median of 2.18. GuruFocus rates GDL with a GF Score™ of 61/100 and a GF Value™ of $11.39 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,588 Asset Management companies, GDL Fund ranks worse than 52.33% 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. GDL Fund's annualized net income for the quarter that ended in Dec. 2025 was $7.66 Mil. GDL Fund's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $116.09 Mil. Therefore, GDL Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.60%.
The historical rank and industry rank for GDL Fund's Return-on-Tangible-Equity or its related term are showing as below:
GDL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.78 Med: 2.18 Max: 6.52
Current: 6.52
During the past 9 years, GDL Fund's highest Return-on-Tangible-Equity was 6.52%. The lowest was -2.78%. And the median was 2.18%.
GDL's Return-on-Tangible-Equity is ranked worse than 52.33% of 1588
companies
in the Asset Management industry
Industry Median: 7.19
vs GDL: 6.52
GDL Fund (NYSE:GDL) 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.
GDL Fund Return-on-Tangible-Equity Related Terms
GDL Fund Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GDL Fund'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.
GDL vs GCV, MGF, RGT: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, GDL Fund'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.
GDL Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, GDL Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GDL Fund'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.60% mean?
GDL Fund (GDL) has a Return-on-Tangible-Equity of 6.60% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on GDL Fund and its competitors. This is 203% above median its historical median of 2.18. According to the industry distribution chart, GDL Fund ranks #831 out of 1588 companies in the Asset Management industry, placing it in the top 52.3%.
Is GDL Fund's Return-on-Tangible-Equity too high?
GDL Fund's current Return-on-Tangible-Equity of 6.60% is 203% above median its 10-year median of 2.18. The Asset Management industry median Return-on-Tangible-Equity is 7.19. GDL Fund's value of 6.60% is 8.2% below this industry median. Based on the distribution chart, GDL Fund ranks #831 out of 1588 companies in the Asset Management industry, which is below the industry midpoint. Overall, GDL Fund has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GDL Fund's Return-on-Tangible-Equity compare to GCV and MGF?
According to the Asset Management industry distribution chart, GDL Fund ranks #831 out of 1588 companies for Return-on-Tangible-Equity. This places GDL Fund in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.19. GDL Fund's value of 6.60% is 8.2% below this benchmark. While the company's 10-year median is 2.18 vs. the industry median of 7.19, GDL Fund 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.19, based on 1,588 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. GDL Fund's current Return-on-Tangible-Equity of 6.60% is 8.2% 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 GDL Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDL Fund's current Return-on-Tangible-Equity is 6.60%, which is 203% above median its own 10-year median of 2.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDL Fund stock overvalued right now?
Based on GuruFocus' analysis, GDL Fund (GDL) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.39, compared to a current price of $8.46 — trading 25.8% below its estimated fair value. The current Return-on-Tangible-Equity is 6.60%, which is 203% above median its 10-year median of 2.18 and 8.2% below the Asset Management industry median of 7.19. GDL Fund's overall GF Score™ is 61/100 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 GDL Fund (GDL), the current Return-on-Tangible-Equity is 6.60% as of Dec. 2025. 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 GDL Fund (GDL) Overvalued in 2026?
Based on GuruFocus' analysis, GDL Fund stock appears to be undervalued.
The current stock price of $8.46 is trading 25.8% below its estimated GF Value™ of $11.39.
GuruFocus considers GDL Fund to be Modestly Undervalued.
Key valuation signals for GDL:
Return-on-Tangible-Equity: 6.60% (203% above median its 10-year median of 2.18)
GF Value™: $11.39 vs. price of $8.46 (25.8% below fair value)
Industry Position: 8.2% below the Asset Management median (#831 of 1588)
No single metric tells the full story. See the GDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDL Fund is a diversified closed-end management investment company. Its primary investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The fund seeks to achieve its objective by investing in merger arbitrage transactions and, to a lesser extent, in corporate reorganizations involving stubs, spin-offs, and liquidations.
61GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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