Five-Star Business FinanceNSE:FIVESTAR -0.60%82 Return-on-Tangible-Equity is 14.61% as of Mar. 2026, which is 9% below its 10-year median of 16.07. GuruFocus rates NSE:FIVESTAR with a GF Score™ of 82/100 and a GF Value™ of ₹976.01 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 524 Credit Services companies, Five-Star Business Finance ranks better than 79.01% 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. Five-Star Business Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹10,771 Mil. Five-Star Business Finance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹73,744 Mil. Therefore, Five-Star Business Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.61%.
The historical rank and industry rank for Five-Star Business Finance's Return-on-Tangible-Equity or its related term are showing as below:
NSE:FIVESTAR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.48 Med: 16.07 Max: 18.68
Current: 16.1
During the past 7 years, Five-Star Business Finance's highest Return-on-Tangible-Equity was 18.68%. The lowest was 13.48%. And the median was 16.07%.
NSE:FIVESTAR's Return-on-Tangible-Equity is ranked better than 79.01% of 524
companies
in the Credit Services industry
Industry Median: 7.055
vs NSE:FIVESTAR: 16.10
Five-Star Business Finance (NSE:FIVESTAR) 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.
Five-Star Business Finance Return-on-Tangible-Equity Related Terms
Five-Star Business Finance Return-on-Tangible-Equity Historical Data
* 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.
Five-Star Business Finance Return-on-Tangible-Equity Chart
NSE:FIVESTAR vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Five-Star Business Finance'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.
Five-Star Business Finance Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Five-Star Business Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Five-Star Business Finance'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 14.61% mean?
Five-Star Business Finance (NSE:FIVESTAR) has a Return-on-Tangible-Equity of 14.61% 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 Five-Star Business Finance and its competitors. This is near median its historical median of 16.07. Over the past decade, Five-Star Business Finance's Return-on-Tangible-Equity has ranged from 13.48 to 18.68. According to the industry distribution chart, Five-Star Business Finance ranks #110 out of 524 companies in the Credit Services industry, placing it in the top 21%.
Is Five-Star Business Finance's Return-on-Tangible-Equity too high?
Five-Star Business Finance's current Return-on-Tangible-Equity of 14.61% is near median its 10-year median of 16.07. Over the past 10 years, this metric has ranged from a low of 13.48 to a high of 18.68. The Credit Services industry median Return-on-Tangible-Equity is 7.06. Five-Star Business Finance's value of 14.61% is 107.1% above this industry median. Based on the distribution chart, Five-Star Business Finance ranks #110 out of 524 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Five-Star Business Finance has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Five-Star Business Finance's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Five-Star Business Finance ranks #110 out of 524 companies for Return-on-Tangible-Equity. This places Five-Star Business Finance in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.06. Five-Star Business Finance's value of 14.61% is 107.1% above this benchmark. Historically, Five-Star Business Finance's own Return-on-Tangible-Equity has ranged from 13.48 to 18.68 over the past decade. While the company's 10-year median is 16.07 vs. the industry median of 7.06, Five-Star Business Finance 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 7.06, based on 524 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. Five-Star Business Finance's current Return-on-Tangible-Equity of 14.61% is 107.1% 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 Five-Star Business Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Five-Star Business Finance's current Return-on-Tangible-Equity is 14.61%, which is near median its own 10-year median of 16.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Five-Star Business Finance stock overvalued right now?
Based on GuruFocus' analysis, Five-Star Business Finance (NSE:FIVESTAR) is currently considered Possible Value Trap. The stock's GF Value™ is ₹976.01, compared to a current price of ₹546.40 — trading 44% below its estimated fair value. The current Return-on-Tangible-Equity is 14.61%, which is near median its 10-year median of 16.07 and 107.1% above the Credit Services industry median of 7.06. Five-Star Business Finance's overall GF Score™ is 82/100 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 Five-Star Business Finance (NSE:FIVESTAR), the current Return-on-Tangible-Equity is 14.61% 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 Five-Star Business Finance (NSE:FIVESTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Five-Star Business Finance stock appears to be undervalued.
The current stock price of ₹546.40 is trading 44% below its estimated GF Value™ of ₹976.01.
GuruFocus considers Five-Star Business Finance to be Possible Value Trap.
Key valuation signals for NSE:FIVESTAR:
Return-on-Tangible-Equity: 14.61% (near median its 10-year median of 16.07)
GF Value™: ₹976.01 vs. price of ₹546.40 (44% below fair value)
Industry Position: 107.1% above the Credit Services median (#110 of 524)
No single metric tells the full story. See the NSE:FIVESTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Five-Star Business Finance Ltd provides secured loans to micro-entrepreneurs and self-employed individuals for business purposes, as well as for asset creation such as home renovation or improvement, or meeting expenses for economic events such as marriage, healthcare, and education.
82GF Score
Get the complete analysis for NSE:FIVESTAR
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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