MSDAW (MSD Acquisition) Return-on-Tangible-Equity: 3.93% (As of Dec. 2022) — 30% Below Median

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MSDAW MSD Acquisition Corp MSDAW
24 GF Score
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What is MSD Acquisition Return-on-Tangible-Equity?

MSD Acquisition MSDAW 24 Return-on-Tangible-Equity is 3.93% as of Dec. 2022, which is 30% below its 10-year median of 5.59. GuruFocus rates MSDAW with a GF Score™ of 24/100. The stock has 1 warning sign investors should review.

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. MSD Acquisition's annualized net income for the quarter that ended in Dec. 2022 was $21.94 Mil. MSD Acquisition's average shareholder tangible equity for the quarter that ended in Dec. 2022 was $557.90 Mil. Therefore, MSD Acquisition's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 was 3.93%.

The historical rank and industry rank for MSD Acquisition's Return-on-Tangible-Equity or its related term are showing as below:

MSDAW' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.58   Med: 5.59   Max: 5.59
Current: 5.58

During the past 2 years, MSD Acquisition's highest Return-on-Tangible-Equity was 5.59%. The lowest was 5.58%. And the median was 5.59%.

MSDAW's Return-on-Tangible-Equity is not ranked
in the Diversified Financial Services industry.
Industry Median: 1.805 vs MSDAW: 5.58

MSD Acquisition  (NAS:MSDAW) 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.


MSD Acquisition Return-on-Tangible-Equity Related Terms


MSD Acquisition Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for MSD Acquisition'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.

MSD Acquisition Return-on-Tangible-Equity Chart

MSD Acquisition Annual Data
Trend Dec21 Dec22
Return-on-Tangible-Equity
0.00 5.59

MSD Acquisition Quarterly Data
Jan21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Return-on-Tangible-Equity Get a 7-Day Free Trial 0.00 6.32 6.83 5.29 3.93

MSDAW vs SLAM, LGAC, SCOA: Return-on-Tangible-Equity Comparison

For the Shell Companies subindustry, MSD Acquisition'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.


MSD Acquisition Return-on-Tangible-Equity vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, MSD Acquisition's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where MSD Acquisition's Return-on-Tangible-Equity falls into.


MSDAW
24GF Score
MSD Acquisition Corp MSDAW
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
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MSD Acquisition Return-on-Tangible-Equity Calculation

MSD Acquisition's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2022 )  (A: Dec. 2021 )(A: Dec. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2022 )  (A: Dec. 2021 )(A: Dec. 2022 )
=30.49/( (530.149+560.639 )/ 2 )
=30.49/545.394
=5.59 %

MSD Acquisition's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2022 )  (Q: Sep. 2022 )(Q: Dec. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2022 )  (Q: Sep. 2022 )(Q: Dec. 2022 )
=21.936/( (555.155+560.639)/ 2 )
=21.936/557.897
=3.93 %

* 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 (Dec. 2022) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 3.93% mean?
MSD Acquisition (MSDAW) has a Return-on-Tangible-Equity of 3.93% as of Dec. 2022. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MSD Acquisition and its competitors. This is 30% below median its historical median of 5.59. Over the past decade, MSD Acquisition's Return-on-Tangible-Equity has ranged from 5.58 to 5.59.
Is MSD Acquisition's Return-on-Tangible-Equity too high?
MSD Acquisition's current Return-on-Tangible-Equity of 3.93% is 30% below median its 10-year median of 5.59. Over the past 10 years, this metric has ranged from a low of 5.58 to a high of 5.59. The Diversified Financial Services industry median Return-on-Tangible-Equity is 1.81. MSD Acquisition's value of 3.93% is 117.7% above this industry median. Overall, MSD Acquisition has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does MSD Acquisition's Return-on-Tangible-Equity compare to SLAM and LGAC?
MSD Acquisition's Return-on-Tangible-Equity of 3.93% can be compared against companies in the Diversified Financial Services industry. The industry median Return-on-Tangible-Equity is 1.81. MSD Acquisition's value of 3.93% is 117.7% above this benchmark. Historically, MSD Acquisition's own Return-on-Tangible-Equity has ranged from 5.58 to 5.59 over the past decade. While the company's 10-year median is 5.59 vs. the industry median of 1.81, MSD Acquisition 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 Diversified Financial Services company?
The median Return-on-Tangible-Equity among Diversified Financial Services companies is 1.81, based on 458 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. MSD Acquisition's current Return-on-Tangible-Equity of 3.93% is 117.7% 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 MSD Acquisition and its competitors. For the Diversified Financial Services industry, the median Return-on-Tangible-Equity is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MSD Acquisition's current Return-on-Tangible-Equity is 3.93%, which is 30% below median its own 10-year median of 5.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MSD Acquisition stock overvalued right now?
MSD Acquisition (MSDAW) has a current Return-on-Tangible-Equity of 3.93%. The current Return-on-Tangible-Equity is 3.93%, which is 30% below median its 10-year median of 5.59 and 117.7% above the Diversified Financial Services industry median of 1.81. MSD Acquisition's overall GF Score™ is 24/100 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 MSD Acquisition (MSDAW), the current Return-on-Tangible-Equity is 3.93% as of Dec. 2022. 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.

MSD Acquisition Business Description

Address One Vanderbilt Avenue, 26th Floor, New York, NY, USA, 10017
MSD Acquisition Corp is a blank check company.
24GF 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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