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Western Alliance BancorpSTU:WEA +2.14%85 Return-on-Tangible-Equity is 18.81% as of Jun. 2026, which is 1% above its 10-year median of 18.55. GuruFocus rates STU:WEA with a GF Score™ of 85/100 and a GF Value™ of €81.28 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,521 Banks companies, Western Alliance Bancorp ranks better than 85.01% 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. Western Alliance Bancorp's annualized net income for the quarter that ended in Jun. 2026 was €909 Mil. Western Alliance Bancorp's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €4,831 Mil. Therefore, Western Alliance Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 18.81%.
The historical rank and industry rank for Western Alliance Bancorp's Return-on-Tangible-Equity or its related term are showing as below:
STU:WEA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.11 Med: 18.55 Max: 29.54
Current: 17.81
During the past 13 years, Western Alliance Bancorp's highest Return-on-Tangible-Equity was 29.54%. The lowest was 17.11%. And the median was 18.55%.
STU:WEA's Return-on-Tangible-Equity is ranked better than 85.01% of 1521
companies
in the Banks industry
Industry Median: 11.44
vs STU:WEA: 17.81
Western Alliance Bancorp (STU:WEA) 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 Alliance Bancorp Return-on-Tangible-Equity Related Terms
Western Alliance Bancorp Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Western Alliance Bancorp'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.
Western Alliance Bancorp Return-on-Tangible-Equity Chart
STU:WEA vs COLB, PB, BOKF: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Western Alliance Bancorp'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 Alliance Bancorp Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Western Alliance Bancorp's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Western Alliance Bancorp'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 18.81% mean?
Western Alliance Bancorp (STU:WEA) has a Return-on-Tangible-Equity of 18.81% 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 Western Alliance Bancorp and its competitors. This is near median its historical median of 18.55. Over the past decade, Western Alliance Bancorp's Return-on-Tangible-Equity has ranged from 17.11 to 29.54. According to the industry distribution chart, Western Alliance Bancorp ranks #228 out of 1521 companies in the Banks industry, placing it in the top 15%.
Is Western Alliance Bancorp's Return-on-Tangible-Equity too high?
Western Alliance Bancorp's current Return-on-Tangible-Equity of 18.81% is near median its 10-year median of 18.55. Over the past 10 years, this metric has ranged from a low of 17.11 to a high of 29.54. The Banks industry median Return-on-Tangible-Equity is 11.44. Western Alliance Bancorp's value of 18.81% is 64.4% above this industry median. Based on the distribution chart, Western Alliance Bancorp ranks #228 out of 1521 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Western Alliance Bancorp has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Western Alliance Bancorp's Return-on-Tangible-Equity compare to COLB and PB?
According to the Banks industry distribution chart, Western Alliance Bancorp ranks #228 out of 1521 companies for Return-on-Tangible-Equity. This places Western Alliance Bancorp in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.44. Western Alliance Bancorp's value of 18.81% is 64.4% above this benchmark. Historically, Western Alliance Bancorp's own Return-on-Tangible-Equity has ranged from 17.11 to 29.54 over the past decade. While the company's 10-year median is 18.55 vs. the industry median of 11.44, Western Alliance Bancorp 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.44, based on 1,521 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 Alliance Bancorp's current Return-on-Tangible-Equity of 18.81% is 64.4% 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 Western Alliance Bancorp and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Alliance Bancorp's current Return-on-Tangible-Equity is 18.81%, which is near median its own 10-year median of 18.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Alliance Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Western Alliance Bancorp (STU:WEA) is currently considered Modestly Undervalued. The stock's GF Value™ is €81.28, compared to a current price of €71.50 — trading 12% below its estimated fair value. The current Return-on-Tangible-Equity is 18.81%, which is near median its 10-year median of 18.55 and 64.4% above the Banks industry median of 11.44. Western Alliance Bancorp's overall GF Score™ is 85/100 with 3 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 Western Alliance Bancorp (STU:WEA), the current Return-on-Tangible-Equity is 18.81% 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 Western Alliance Bancorp (STU:WEA) Overvalued in 2026?
Based on GuruFocus' analysis, Western Alliance Bancorp stock appears to be undervalued.
The current stock price of €71.50 is trading 12% below its estimated GF Value™ of €81.28.
GuruFocus considers Western Alliance Bancorp to be Modestly Undervalued.
Key valuation signals for STU:WEA:
Return-on-Tangible-Equity: 18.81% (near median its 10-year median of 18.55)
GF Value™: €81.28 vs. price of €71.50 (12% below fair value)
Industry Position: 64.4% above the Banks median (#228 of 1521)
No single metric tells the full story. See the STU:WEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Alliance Bancorp provides a full spectrum of customized loan, deposit, and treasury management capabilities, including funds transfer and other digital payment offerings. The company's reportable segments are Commercial segment includes provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry. Consumer Related segment offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and Corporate & Other.
85GF Score
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