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Western Asset Investment Gradeome FundPAI -0.11%57 Return-on-Tangible-Equity is 7.03% as of Dec. 2025, which is 9% below its 10-year median of 7.76. GuruFocus rates PAI with a GF Score™ of 57/100 and a GF Value™ of $16.49 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,589 Asset Management companies, Western Asset Investment Gradeome Fund ranks better than 52.36% on this metric.
PAI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.23 Med: 7.76 Max: 14.73
Current: 7.75
During the past 9 years, Western Asset Investment Gradeome Fund's highest Return-on-Tangible-Equity was 14.73%. The lowest was -18.23%. And the median was 7.76%.
PAI's Return-on-Tangible-Equity is ranked better than 52.36% of 1589
companies
in the Asset Management industry
Industry Median: 7.21
vs PAI: 7.75
Western Asset Investment Gradeome Fund (NYSE:PAI) 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.
Western Asset Investment Gradeome Fund Return-on-Tangible-Equity Related Terms
Western Asset Investment Gradeome Fund 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.
Western Asset Investment Gradeome Fund Return-on-Tangible-Equity Chart
Western Asset Investment Gradeome Fund Annual Data
PAI vs MCN, JHI, NIM: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Western Asset Investment Gradeome 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.
Western Asset Investment Gradeome Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Western Asset Investment Gradeome Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Western Asset Investment Gradeome 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 7.03% mean?
Western Asset Investment Gradeome Fund (PAI) has a Return-on-Tangible-Equity of 7.03% 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 Western Asset Investment Gradeome Fund and its competitors. This is near median its historical median of 7.76. According to the industry distribution chart, Western Asset Investment Gradeome Fund ranks #757 out of 1589 companies in the Asset Management industry, placing it in the top 47.6%.
Is Western Asset Investment Gradeome Fund's Return-on-Tangible-Equity too high?
Western Asset Investment Gradeome Fund's current Return-on-Tangible-Equity of 7.03% is near median its 10-year median of 7.76. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Western Asset Investment Gradeome Fund's value of 7.03% is 2.5% below this industry median. Based on the distribution chart, Western Asset Investment Gradeome Fund ranks #757 out of 1589 companies in the Asset Management industry, which is above the industry midpoint. Overall, Western Asset Investment Gradeome Fund has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Western Asset Investment Gradeome Fund's Return-on-Tangible-Equity compare to MCN and JHI?
According to the Asset Management industry distribution chart, Western Asset Investment Gradeome Fund ranks #757 out of 1589 companies for Return-on-Tangible-Equity. This puts Western Asset Investment Gradeome Fund in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Western Asset Investment Gradeome Fund's value of 7.03% is 2.5% below this benchmark. While the company's 10-year median is 7.76 vs. the industry median of 7.21, Western Asset Investment Gradeome 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 7.21, based on 1,589 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. Western Asset Investment Gradeome Fund's current Return-on-Tangible-Equity of 7.03% is 2.5% 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 Western Asset Investment Gradeome Fund and its competitors. For the Asset Management 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. Western Asset Investment Gradeome Fund's current Return-on-Tangible-Equity is 7.03%, which is near median its own 10-year median of 7.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Asset Investment Gradeome Fund stock overvalued right now?
Based on GuruFocus' analysis, Western Asset Investment Gradeome Fund (PAI) is currently considered Modestly Undervalued. The stock's GF Value™ is $16.49, compared to a current price of $11.90 — trading 27.9% below its estimated fair value. The current Return-on-Tangible-Equity is 7.03%, which is near median its 10-year median of 7.76 and 2.5% below the Asset Management industry median of 7.21. Western Asset Investment Gradeome Fund's overall GF Score™ is 57/100 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 Western Asset Investment Gradeome Fund (PAI), the current Return-on-Tangible-Equity is 7.03% 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 Western Asset Investment Gradeome Fund (PAI) Overvalued in 2026?
Based on GuruFocus' analysis, Western Asset Investment Gradeome Fund stock appears to be undervalued.
The current stock price of $11.90 is trading 27.9% below its estimated GF Value™ of $16.49.
GuruFocus considers Western Asset Investment Gradeome Fund to be Modestly Undervalued.
Key valuation signals for PAI:
Return-on-Tangible-Equity: 7.03% (near median its 10-year median of 7.76)
GF Value™: $16.49 vs. price of $11.90 (27.9% below fair value)
Industry Position: 2.5% below the Asset Management median (#757 of 1589)
No single metric tells the full story. See the PAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Asset Investment Gradeome Fund Business Description
Western Asset Investment Grade Income Fund Inc is a closed-end diversified investment company. Its primary investment objective is to seek a high level of current income, consistent with prudent investment risk, through investment in a diversified portfolio of debt securities. To a lesser extent, the fund also invests in privately placed debt securities and in certain equity securities. Capital appreciation is its secondary investment objective. The fund invests a majority of its net assets in fixed income securities that are rated in the Baa or BBB categories or above at the time of purchase by one or more Nationally Recognized Statistical Rating Organizations (NRSROs) or unrated securities of comparable quality at the time of purchase (as determined by the investment adviser).
57GF Score
Get the complete analysis for PAI
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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