Capital One FinancialLTS:0HT4 +0.01%80 Return-on-Tangible-Equity is 12.77% as of Mar. 2026, which is 9% above its 10-year median of 11.75. GuruFocus rates LTS:0HT4 with a GF Score™ of 80/100 and a GF Value™ of $162.34 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 525 Credit Services companies, Capital One Financial ranks worse than 56.76% 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. Capital One Financial's annualized net income for the quarter that ended in Mar. 2026 was $8,696 Mil. Capital One Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $68,101 Mil. Therefore, Capital One Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.77%.
The historical rank and industry rank for Capital One Financial's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0HT4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.3 Med: 11.75 Max: 26.99
Current: 5.08
During the past 13 years, Capital One Financial's highest Return-on-Tangible-Equity was 26.99%. The lowest was 4.30%. And the median was 11.75%.
LTS:0HT4's Return-on-Tangible-Equity is ranked worse than 56.76% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs LTS:0HT4: 5.08
Capital One Financial (LTS:0HT4) 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.
Capital One Financial Return-on-Tangible-Equity Related Terms
Capital One Financial Return-on-Tangible-Equity Historical Data
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The historical data trend for Capital One Financial'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.
Capital One Financial Return-on-Tangible-Equity Chart
LTS:0HT4 vs PYPL, AFRM, SYF: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Capital One Financial'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.
Capital One Financial Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Capital One Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Capital One Financial'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 12.77% mean?
Capital One Financial (LTS:0HT4) has a Return-on-Tangible-Equity of 12.77% 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 Capital One Financial and its competitors. This is near median its historical median of 11.75. Over the past decade, Capital One Financial's Return-on-Tangible-Equity has ranged from 4.30 to 26.99. According to the industry distribution chart, Capital One Financial ranks #298 out of 525 companies in the Credit Services industry, placing it in the top 56.8%.
Is Capital One Financial's Return-on-Tangible-Equity too high?
Capital One Financial's current Return-on-Tangible-Equity of 12.77% is near median its 10-year median of 11.75. Over the past 10 years, this metric has ranged from a low of 4.30 to a high of 26.99. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Capital One Financial's value of 12.77% is 82.2% above this industry median. Based on the distribution chart, Capital One Financial ranks #298 out of 525 companies in the Credit Services industry, which is below the industry midpoint. Overall, Capital One Financial has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital One Financial's Return-on-Tangible-Equity compare to PYPL and AFRM?
According to the Credit Services industry distribution chart, Capital One Financial ranks #298 out of 525 companies for Return-on-Tangible-Equity. This places Capital One Financial in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.01. Capital One Financial's value of 12.77% is 82.2% above this benchmark. Historically, Capital One Financial's own Return-on-Tangible-Equity has ranged from 4.30 to 26.99 over the past decade. While the company's 10-year median is 11.75 vs. the industry median of 7.01, Capital One Financial 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 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. Capital One Financial's current Return-on-Tangible-Equity of 12.77% is 82.2% 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 Capital One Financial and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital One Financial's current Return-on-Tangible-Equity is 12.77%, which is near median its own 10-year median of 11.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital One Financial stock overvalued right now?
Based on GuruFocus' analysis, Capital One Financial (LTS:0HT4) is currently considered Modestly Overvalued. The stock's GF Value™ is $162.34, compared to a current price of $204.27 — trading 25.8% above its estimated fair value. The current Return-on-Tangible-Equity is 12.77%, which is near median its 10-year median of 11.75 and 82.2% above the Credit Services industry median of 7.01. Capital One Financial's overall GF Score™ is 80/100 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 Capital One Financial (LTS:0HT4), the current Return-on-Tangible-Equity is 12.77% 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 Capital One Financial (LTS:0HT4) Overvalued in 2026?
Based on GuruFocus' analysis, Capital One Financial stock appears to be overvalued.
The current stock price of $204.27 is trading 25.8% above its estimated GF Value™ of $162.34.
GuruFocus considers Capital One Financial to be Modestly Overvalued.
Key valuation signals for LTS:0HT4:
Return-on-Tangible-Equity: 12.77% (near median its 10-year median of 11.75)
GF Value™: $162.34 vs. price of $204.27 (25.8% above fair value)
Industry Position: 82.2% above the Credit Services median (#298 of 525)
No single metric tells the full story. See the LTS:0HT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital One Financial is a diversified financial-services holding company headquartered in McLean, Virginia. Originally a spinoff of Signet Financial's credit card division in 1994, the company is now primarily involved in credit card lending, auto loans, and commercial lending. Following the acquisition of Discover in 2025, the firm also has a modest personal loan business, though credit card lending provides the majority of the bank's revenue.
80GF Score
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