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. Tekla World Healthcare Fund's annualized net income for the quarter that ended in Mar. 2026 was $-8.25 Mil. Tekla World Healthcare Fund's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $496.55 Mil. Therefore, Tekla World Healthcare Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -1.66%.
The historical rank and industry rank for Tekla World Healthcare Fund's Return-on-Tangible-Equity or its related term are showing as below:
THW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.32 Med: 8.35 Max: 19.9
Current: 17.87
During the past 9 years, Tekla World Healthcare Fund's highest Return-on-Tangible-Equity was 19.90%. The lowest was -12.32%. And the median was 8.35%.
THW's Return-on-Tangible-Equity is ranked better than 74.94% of 1588
companies
in the Asset Management industry
Industry Median: 7.205
vs THW: 17.87
Tekla World Healthcare Fund (NYSE:THW) 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.
Tekla World Healthcare Fund Return-on-Tangible-Equity Related Terms
Tekla World Healthcare Fund Return-on-Tangible-Equity Historical Data
* 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.
Tekla World Healthcare Fund Return-on-Tangible-Equity Chart
THW vs MSIF, IQI, TWN: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Tekla World Healthcare Fund'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.
Tekla World Healthcare Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Tekla World Healthcare Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tekla World Healthcare Fund'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 two times the semi-annual (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 -1.66% mean?
Tekla World Healthcare Fund (THW) has a Return-on-Tangible-Equity of -1.66% 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 Tekla World Healthcare Fund and its competitors. According to the industry distribution chart, Tekla World Healthcare Fund ranks #398 out of 1588 companies in the Asset Management industry, placing it in the top 25.1%.
Is Tekla World Healthcare Fund's Return-on-Tangible-Equity too high?
Tekla World Healthcare Fund's current Return-on-Tangible-Equity is -1.66%. Based on the distribution chart, Tekla World Healthcare Fund ranks #398 out of 1588 companies in the Asset Management industry, which is above the industry midpoint. Overall, Tekla World Healthcare Fund has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tekla World Healthcare Fund's Return-on-Tangible-Equity compare to MSIF and IQI?
According to the Asset Management industry distribution chart, Tekla World Healthcare Fund ranks #398 out of 1588 companies for Return-on-Tangible-Equity. This puts Tekla World Healthcare Fund in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.21. 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 7.21, based on 1,588 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. 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 Tekla World Healthcare Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tekla World Healthcare Fund's current Return-on-Tangible-Equity is -1.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tekla World Healthcare Fund stock overvalued right now?
Based on GuruFocus' analysis, Tekla World Healthcare Fund (THW) is currently considered Significantly Undervalued. The stock's GF Value™ is $19.36, compared to a current price of $13.49 — trading 30.3% below its estimated fair value. The current Return-on-Tangible-Equity is -1.66%. Tekla World Healthcare Fund's overall GF Score™ is 57/100 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 Tekla World Healthcare Fund (THW), the current Return-on-Tangible-Equity is -1.66% 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 Tekla World Healthcare Fund (THW) Overvalued in 2026?
Based on GuruFocus' analysis, Tekla World Healthcare Fund stock appears to be undervalued.
The current stock price of $13.49 is trading 30.3% below its estimated GF Value™ of $19.36.
GuruFocus considers Tekla World Healthcare Fund to be Significantly Undervalued.
Key valuation signals for THW:
Return-on-Tangible-Equity: -1.66%
GF Value™: $19.36 vs. price of $13.49 (30.3% below fair value)
No single metric tells the full story. See the THW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tekla World Healthcare Fund is a diversified closed-end management investment company. Its investment objective is to seek current income and long-term capital appreciation. The Fund mainly invests in equity and debt securities of public and private U.S. and non-U.S. companies that the Fund's investment adviser believes have the potential for above-average growth. The company's investment portfolio includes holdings across various sub-sectors such as pharmaceuticals and biotechnology, healthcare providers and services, real estate investment trusts, medical devices and diagnostics, and other related areas.
57GF Score
Get the complete analysis for THW
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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