Truist FinancialTFC +2.15%61 Return-on-Tangible-Equity is 14.00% as of Mar. 2026, which is 9% above its 10-year median of 12.85. GuruFocus rates TFC with a GF Score™ of 61/100 and a GF Value™ of $48.91 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,523 Banks companies, Truist Financial ranks better than 60.87% 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. Truist Financial's annualized net income for the quarter that ended in Mar. 2026 was $5,924 Mil. Truist Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $42,311 Mil. Therefore, Truist Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.00%.
The historical rank and industry rank for Truist Financial's Return-on-Tangible-Equity or its related term are showing as below:
TFC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.48 Med: 12.85 Max: 19.81
Current: 12.96
During the past 13 years, Truist Financial's highest Return-on-Tangible-Equity was 19.81%. The lowest was -3.48%. And the median was 12.85%.
TFC's Return-on-Tangible-Equity is ranked better than 60.87% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs TFC: 12.96
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.
Truist Financial Return-on-Tangible-Equity Related Terms
Truist Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Truist Financial'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.
TFC vs NU, FITB, HBAN: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Truist Financial'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.
Truist Financial Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Truist Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Truist Financial'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 14.00% mean?
Truist Financial (TFC) has a Return-on-Tangible-Equity of 14.00% 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 Truist Financial and its competitors. This is near median its historical median of 12.85. According to the industry distribution chart, Truist Financial ranks #596 out of 1523 companies in the Banks industry, placing it in the top 39.1%.
Is Truist Financial's Return-on-Tangible-Equity too high?
Truist Financial's current Return-on-Tangible-Equity of 14.00% is near median its 10-year median of 12.85. The Banks industry median Return-on-Tangible-Equity is 11.20. Truist Financial's value of 14.00% is 25% above this industry median. Based on the distribution chart, Truist Financial ranks #596 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Truist Financial has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Truist Financial's Return-on-Tangible-Equity compare to NU and FITB?
According to the Banks industry distribution chart, Truist Financial ranks #596 out of 1523 companies for Return-on-Tangible-Equity. This puts Truist Financial in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Truist Financial's value of 14.00% is 25% above this benchmark. While the company's 10-year median is 12.85 vs. the industry median of 11.20, Truist Financial 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 11.20, 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. Truist Financial's current Return-on-Tangible-Equity of 14.00% is 25% 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 Truist Financial 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. Truist Financial's current Return-on-Tangible-Equity is 14.00%, which is near median its own 10-year median of 12.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Truist Financial stock overvalued right now?
Based on GuruFocus' analysis, Truist Financial (TFC) is currently considered Fairly Valued. The stock's GF Value™ is $48.91, compared to a current price of $50.89 — trading 4% above its estimated fair value. The current Return-on-Tangible-Equity is 14.00%, which is near median its 10-year median of 12.85 and 25% above the Banks industry median of 11.20. Truist Financial's overall GF Score™ is 61/100 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 Truist Financial (TFC), the current Return-on-Tangible-Equity is 14.00% 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 Truist Financial (TFC) Overvalued in 2026?
Based on GuruFocus' analysis, Truist Financial stock appears to be overvalued.
The current stock price of $50.89 is trading 4% above its estimated GF Value™ of $48.91.
GuruFocus considers Truist Financial to be Fairly Valued.
Key valuation signals for TFC:
Return-on-Tangible-Equity: 14.00% (near median its 10-year median of 12.85)
GF Value™: $48.91 vs. price of $50.89 (4% above fair value)
Industry Position: 25% above the Banks median (#596 of 1523)
No single metric tells the full story. See the TFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Truist Financial is one of the three super-regional banks in the US, with around $550 billion in assets as of the first quarter of 2026. Truist emerged from the combination of BB&T and SunTrust in 2019. Based in Charlotte, North Carolina, the bank's footprint is largely in the Mid-Atlantic and Southeast. Apart from retail and commercial banking operations, the bank also offers online and point-of-sale consumer lending, cards, wealth management, investment banking, and other banking services.
61GF Score
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