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.
Runway Growth FinanceRWAY +3.72%55 Return-on-Tangible-Equity is 23.12% as of Jun. 2026, which is 193% above its 10-year median of 7.90. GuruFocus rates RWAY with a GF Score™ of 55/100 and a GF Value™ of $7.85 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,592 Asset Management companies, Runway Growth Finance ranks worse than 71.61% 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. Runway Growth Finance's annualized net income for the quarter that ended in Jun. 2026 was $108.77 Mil. Runway Growth Finance's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $470.40 Mil. Therefore, Runway Growth Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 23.12%.
The historical rank and industry rank for Runway Growth Finance's Return-on-Tangible-Equity or its related term are showing as below:
RWAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.61 Med: 7.9 Max: 13.86
Current: 1.61
During the past 8 years, Runway Growth Finance's highest Return-on-Tangible-Equity was 13.86%. The lowest was 1.61%. And the median was 7.90%.
RWAY's Return-on-Tangible-Equity is ranked worse than 71.61% of 1592
companies
in the Asset Management industry
Industry Median: 7.43
vs RWAY: 1.61
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.
Runway Growth Finance Return-on-Tangible-Equity Related Terms
Runway Growth Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Runway Growth 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.
RWAY vs EIC, SRV, FTF: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Runway Growth 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.
Runway Growth Finance Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Runway Growth Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Runway Growth 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 23.12% mean?
Runway Growth Finance (RWAY) has a Return-on-Tangible-Equity of 23.12% 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 Runway Growth Finance and its competitors. This is 193% above median its historical median of 7.90. Over the past decade, Runway Growth Finance's Return-on-Tangible-Equity has ranged from 1.61 to 13.86. According to the industry distribution chart, Runway Growth Finance ranks #1140 out of 1592 companies in the Asset Management industry, placing it in the top 71.6%.
Is Runway Growth Finance's Return-on-Tangible-Equity too high?
Runway Growth Finance's current Return-on-Tangible-Equity of 23.12% is 193% above median its 10-year median of 7.90. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 13.86. The Asset Management industry median Return-on-Tangible-Equity is 7.43. Runway Growth Finance's value of 23.12% is 211.2% above this industry median. Based on the distribution chart, Runway Growth Finance ranks #1140 out of 1592 companies in the Asset Management industry, which is below the industry midpoint. Overall, Runway Growth Finance has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Runway Growth Finance's Return-on-Tangible-Equity compare to EIC and SRV?
According to the Asset Management industry distribution chart, Runway Growth Finance ranks #1140 out of 1592 companies for Return-on-Tangible-Equity. This places Runway Growth Finance in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.43. Runway Growth Finance's value of 23.12% is 211.2% above this benchmark. Historically, Runway Growth Finance's own Return-on-Tangible-Equity has ranged from 1.61 to 13.86 over the past decade. While the company's 10-year median is 7.90 vs. the industry median of 7.43, Runway Growth 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.43, based on 1,592 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. Runway Growth Finance's current Return-on-Tangible-Equity of 23.12% is 211.2% 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 Runway Growth Finance and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Runway Growth Finance's current Return-on-Tangible-Equity is 23.12%, which is 193% above median its own 10-year median of 7.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Runway Growth Finance stock overvalued right now?
Based on GuruFocus' analysis, Runway Growth Finance (RWAY) is currently considered Modestly Undervalued. The stock's GF Value™ is $7.85, compared to a current price of $6.70 — trading 14.7% below its estimated fair value. The current Return-on-Tangible-Equity is 23.12%, which is 193% above median its 10-year median of 7.90 and 211.2% above the Asset Management industry median of 7.43. Runway Growth Finance's overall GF Score™ is 55/100 with 9 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 Runway Growth Finance (RWAY), the current Return-on-Tangible-Equity is 23.12% 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 Runway Growth Finance (RWAY) Overvalued in 2026?
Based on GuruFocus' analysis, Runway Growth Finance stock appears to be undervalued.
The current stock price of $6.70 is trading 14.7% below its estimated GF Value™ of $7.85.
GuruFocus considers Runway Growth Finance to be Modestly Undervalued.
Key valuation signals for RWAY:
Return-on-Tangible-Equity: 23.12% (193% above median its 10-year median of 7.90)
GF Value™: $7.85 vs. price of $6.70 (14.7% below fair value)
Industry Position: 211.2% above the Asset Management median (#1140 of 1592)
No single metric tells the full story. See the RWAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Runway Growth Finance Corp is a specialty finance company focused on providing senior secured loans to high-growth-potential companies in technology, life sciences, healthcare information and services, business services, select consumer services and products, and other high-growth industries. The company has Investments in the United States, Germany, and UK, Canada, Netherlands, with the majority of its portfolio invested in the United States. The company's investment objective is to maximize its total return to its stockholders through current income on its loan portfolio, and secondarily through capital gain on its warrants and other equity positions.
55GF Score
Get the complete analysis for RWAY
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
RWAY has been successfully added to your 
