Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Muthoot FinanceNSE:MUTHOOTFIN +2.56%78 Return-on-Tangible-Equity is 27.65% as of Jun. 2026, which is 18% above its 10-year median of 23.45. GuruFocus rates NSE:MUTHOOTFIN with a GF Score™ of 78/100 and a GF Value™ of ₹3,501.47 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 532 Credit Services companies, Muthoot Finance ranks better than 89.66% 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. Muthoot Finance's annualized net income for the quarter that ended in Jun. 2026 was ₹111,963 Mil. Muthoot Finance's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹0 Mil. Therefore, Muthoot Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was N/A%.
The historical rank and industry rank for Muthoot Finance's Return-on-Tangible-Equity or its related term are showing as below:
NSE:MUTHOOTFIN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.89 Med: 23.45 Max: 31.88
Current: 31.88
During the past 13 years, Muthoot Finance's highest Return-on-Tangible-Equity was 31.88%. The lowest was 17.89%. And the median was 23.45%.
NSE:MUTHOOTFIN's Return-on-Tangible-Equity is ranked better than 89.66% of 532
companies
in the Credit Services industry
Industry Median: 7.205
vs NSE:MUTHOOTFIN: 31.88
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.
Muthoot Finance Return-on-Tangible-Equity Related Terms
Muthoot Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Muthoot Finance'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.
NSE:MUTHOOTFIN vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Muthoot 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.
Muthoot Finance Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Muthoot 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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 27.65% mean?
Muthoot Finance (NSE:MUTHOOTFIN) has a Return-on-Tangible-Equity of 27.65% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Muthoot Finance and its competitors. This is 18% above median its historical median of 23.45. Over the past decade, Muthoot Finance's Return-on-Tangible-Equity has ranged from 17.89 to 31.88. According to the industry distribution chart, Muthoot Finance ranks #55 out of 532 companies in the Credit Services industry, placing it in the top 10.3%.
Is Muthoot Finance's Return-on-Tangible-Equity too high?
Muthoot Finance's current Return-on-Tangible-Equity of 27.65% is 18% above median its 10-year median of 23.45. Over the past 10 years, this metric has ranged from a low of 17.89 to a high of 31.88. The Credit Services industry median Return-on-Tangible-Equity is 7.21. Muthoot Finance's value of 27.65% is 283.8% above this industry median. Based on the distribution chart, Muthoot Finance ranks #55 out of 532 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Muthoot Finance has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Muthoot Finance's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Finance ranks #55 out of 532 companies for Return-on-Tangible-Equity. This places Muthoot Finance in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.21. Muthoot Finance's value of 27.65% is 283.8% above this benchmark. Historically, Muthoot Finance's own Return-on-Tangible-Equity has ranged from 17.89 to 31.88 over the past decade. While the company's 10-year median is 23.45 vs. the industry median of 7.21, Muthoot 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 7.21, based on 532 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. Muthoot Finance's current Return-on-Tangible-Equity of 27.65% is 283.8% 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 Muthoot Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Finance's current Return-on-Tangible-Equity is 27.65%, which is 18% above median its own 10-year median of 23.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Finance stock overvalued right now?
Based on GuruFocus' analysis, Muthoot Finance (NSE:MUTHOOTFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,501.47, compared to a current price of ₹2,841.10 — trading 18.9% below its estimated fair value. The current Return-on-Tangible-Equity is 27.65%, which is 18% above median its 10-year median of 23.45 and 283.8% above the Credit Services industry median of 7.21. Muthoot Finance's overall GF Score™ is 78/100 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 Muthoot Finance (NSE:MUTHOOTFIN), the current Return-on-Tangible-Equity is 27.65% as of Jun. 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 Muthoot Finance (NSE:MUTHOOTFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Muthoot Finance stock appears to be undervalued.
The current stock price of ₹2,841.10 is trading 18.9% below its estimated GF Value™ of ₹3,501.47.
GuruFocus considers Muthoot Finance to be Modestly Undervalued.
Key valuation signals for NSE:MUTHOOTFIN:
Return-on-Tangible-Equity: 27.65% (18% above median its 10-year median of 23.45)
GF Value™: ₹3,501.47 vs. price of ₹2,841.10 (18.9% below fair value)
Industry Position: 283.8% above the Credit Services median (#55 of 532)
No single metric tells the full story. See the NSE:MUTHOOTFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muthoot Finance Ltd is a non-deposit-taking, non-banking financial company with thousands of branches in India. The company's main business is providing personal and business loans to individuals who do not have access to formal credit. The loans are typically secured by gold jewelry. The company also offers some microfinance loans and housing loans to customer segments and areas that are underserved by banks. Interest income accounts for nearly all the company's revenue. It has operations in Sri Lanka and India, with India providing almost all the company's revenue.
78GF Score
Get the complete analysis for NSE:MUTHOOTFIN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:MUTHOOTFIN has been successfully added to your 
