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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. Pagaya Technologies's annualized net income for the quarter that ended in Jun. 2026 was $181 Mil. Pagaya Technologies's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $533 Mil. Therefore, Pagaya Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 33.96%.
The historical rank and industry rank for Pagaya Technologies's Return-on-Tangible-Equity or its related term are showing as below:
PGY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -95.93 Med: -33.51 Max: 28.11
Current: 28.11
During the past 6 years, Pagaya Technologies's highest Return-on-Tangible-Equity was 28.11%. The lowest was -95.93%. And the median was -33.51%.
PGY's Return-on-Tangible-Equity is ranked better than 73.41% of 2478
companies
in the Software industry
Industry Median: 9.86
vs PGY: 28.11
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.
Pagaya Technologies Return-on-Tangible-Equity Related Terms
Pagaya Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pagaya Technologies'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.
PGY vs PRGS, ATEN, EVTC: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Pagaya Technologies'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.
Pagaya Technologies Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Pagaya Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pagaya Technologies'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 33.96% mean?
Pagaya Technologies (PGY) has a Return-on-Tangible-Equity of 33.96% 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 Pagaya Technologies and its competitors. According to the industry distribution chart, Pagaya Technologies ranks #659 out of 2478 companies in the Software industry, placing it in the top 26.6%.
Is Pagaya Technologies' Return-on-Tangible-Equity too high?
Pagaya Technologies' current Return-on-Tangible-Equity is 33.96%. The Software industry median Return-on-Tangible-Equity is 9.86. Pagaya Technologies' value of 33.96% is 244.4% above this industry median. Based on the distribution chart, Pagaya Technologies ranks #659 out of 2478 companies in the Software industry, which is above the industry midpoint. Overall, Pagaya Technologies has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pagaya Technologies' Return-on-Tangible-Equity compare to PRGS and ATEN?
According to the Software industry distribution chart, Pagaya Technologies ranks #659 out of 2478 companies for Return-on-Tangible-Equity. This puts Pagaya Technologies in the upper half of its industry. The industry median Return-on-Tangible-Equity is 9.86. Pagaya Technologies' value of 33.96% is 244.4% above this benchmark. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.86, based on 2,478 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. Pagaya Technologies's current Return-on-Tangible-Equity of 33.96% is 244.4% 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 Pagaya Technologies and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pagaya Technologies's current Return-on-Tangible-Equity is 33.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pagaya Technologies stock overvalued right now?
Based on GuruFocus' analysis, Pagaya Technologies (PGY) is currently considered Significantly Overvalued. The stock's GF Value™ is $15.45, compared to a current price of $22.99 — trading 48.8% above its estimated fair value. The current Return-on-Tangible-Equity is 33.96% and 244.4% above the Software industry median of 9.86. Pagaya Technologies' overall GF Score™ is 74/100 with 6 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 Pagaya Technologies (PGY), the current Return-on-Tangible-Equity is 33.96% 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 Pagaya Technologies (PGY) Overvalued in 2026?
Based on GuruFocus' analysis, Pagaya Technologies stock appears to be overvalued.
The current stock price of $22.99 is trading 48.8% above its estimated GF Value™ of $15.45.
GuruFocus considers Pagaya Technologies to be Significantly Overvalued.
Key valuation signals for PGY:
Return-on-Tangible-Equity: 33.96%
GF Value™: $15.45 vs. price of $22.99 (48.8% above fair value)
Industry Position: 244.4% above the Software median (#659 of 2478)
No single metric tells the full story. See the PGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pagaya Technologies Ltd is a product-focused technology company. It uses machine learning, a vast data network, and an AI-driven approach to offer comprehensive consumer credit and residential real estate products for its partners, their customers, and investors. Its suite of products includes Decline Monetization, Dual Look, First Look, Affiliate Optimizer Engine, Direct Marketing Engine, and FastPass, providing lenders with an AI-powered credit and acquisition ecosystem that helps them approve more borrowers, capture more demand, and grow without adding risk. Geographically, the company generates maximum revenue from its business in the United States.
74GF Score
Get the complete analysis for PGY
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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