Prosperity BancsharesPB -3.37%75 Return-on-Tangible-Equity is 11.16% as of Mar. 2026, which is 29% below its 10-year median of 15.61. GuruFocus rates PB with a GF Score™ of 75/100 and a GF Value™ of $79.87 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,523 Banks companies, Prosperity Bancshares ranks better than 60.6% 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. Prosperity Bancshares's annualized net income for the quarter that ended in Mar. 2026 was $465 Mil. Prosperity Bancshares's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,168 Mil. Therefore, Prosperity Bancshares's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.16%.
The historical rank and industry rank for Prosperity Bancshares's Return-on-Tangible-Equity or its related term are showing as below:
PB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.92 Med: 15.61 Max: 19.28
Current: 12.94
During the past 13 years, Prosperity Bancshares's highest Return-on-Tangible-Equity was 19.28%. The lowest was 11.92%. And the median was 15.61%.
PB's Return-on-Tangible-Equity is ranked better than 60.6% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs PB: 12.94
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.
Prosperity Bancshares Return-on-Tangible-Equity Related Terms
Prosperity Bancshares Return-on-Tangible-Equity Historical Data
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The historical data trend for Prosperity Bancshares'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.
PB vs CBC, FNB, VLY: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Prosperity Bancshares'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.
Prosperity Bancshares Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Prosperity Bancshares's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Prosperity Bancshares'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 11.16% mean?
Prosperity Bancshares (PB) has a Return-on-Tangible-Equity of 11.16% 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 Prosperity Bancshares and its competitors. This is 29% below median its historical median of 15.61. Over the past decade, Prosperity Bancshares' Return-on-Tangible-Equity has ranged from 11.92 to 19.28. According to the industry distribution chart, Prosperity Bancshares ranks #600 out of 1523 companies in the Banks industry, placing it in the top 39.4%.
Is Prosperity Bancshares' Return-on-Tangible-Equity too high?
Prosperity Bancshares' current Return-on-Tangible-Equity of 11.16% is 29% below median its 10-year median of 15.61. Over the past 10 years, this metric has ranged from a low of 11.92 to a high of 19.28. The Banks industry median Return-on-Tangible-Equity is 11.20. Prosperity Bancshares' value of 11.16% is 0.4% below this industry median. Based on the distribution chart, Prosperity Bancshares ranks #600 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Prosperity Bancshares has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prosperity Bancshares' Return-on-Tangible-Equity compare to CBC and FNB?
According to the Banks industry distribution chart, Prosperity Bancshares ranks #600 out of 1523 companies for Return-on-Tangible-Equity. This puts Prosperity Bancshares in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Prosperity Bancshares' value of 11.16% is 0.4% below this benchmark. Historically, Prosperity Bancshares' own Return-on-Tangible-Equity has ranged from 11.92 to 19.28 over the past decade. While the company's 10-year median is 15.61 vs. the industry median of 11.20, Prosperity Bancshares 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 a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 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. Prosperity Bancshares's current Return-on-Tangible-Equity of 11.16% is 0.4% 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 Prosperity Bancshares and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prosperity Bancshares's current Return-on-Tangible-Equity is 11.16%, which is 29% below median its own 10-year median of 15.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperity Bancshares stock overvalued right now?
Based on GuruFocus' analysis, Prosperity Bancshares (PB) is currently considered Modestly Undervalued. The stock's GF Value™ is $79.87, compared to a current price of $70.90 — trading 11.2% below its estimated fair value. The current Return-on-Tangible-Equity is 11.16%, which is 29% below median its 10-year median of 15.61 and 0.4% below the Banks industry median of 11.20. Prosperity Bancshares' overall GF Score™ is 75/100 with 2 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 Prosperity Bancshares (PB), the current Return-on-Tangible-Equity is 11.16% 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 Prosperity Bancshares (PB) Overvalued in 2026?
Based on GuruFocus' analysis, Prosperity Bancshares stock appears to be undervalued.
The current stock price of $70.90 is trading 11.2% below its estimated GF Value™ of $79.87.
GuruFocus considers Prosperity Bancshares to be Modestly Undervalued.
Key valuation signals for PB:
Return-on-Tangible-Equity: 11.16% (29% below median its 10-year median of 15.61)
GF Value™: $79.87 vs. price of $70.90 (11.2% below fair value)
Industry Position: 0.4% below the Banks median (#600 of 1523)
No single metric tells the full story. See the PB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prosperity Bancshares Inc provides retail and commercial banking services to individuals and small to midsize businesses. It provides a wide array of financial products and services to businesses and consumers throughout Texas and Oklahoma. The bank provides Personal, Business, Mortgage, and Banking Services.
75GF Score
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