World AcceptanceWRLD -5.33%63 Return-on-Tangible-Equity is 42.55% as of Mar. 2026, which is 228% above its 10-year median of 12.99. GuruFocus rates WRLD with a GF Score™ of 63/100 and a GF Value™ of $160.05 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 522 Credit Services companies, World Acceptance ranks better than 57.28% 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. World Acceptance's annualized net income for the quarter that ended in Mar. 2026 was $144.4 Mil. World Acceptance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $339.3 Mil. Therefore, World Acceptance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 42.55%.
The historical rank and industry rank for World Acceptance's Return-on-Tangible-Equity or its related term are showing as below:
WRLD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.99 Med: 12.99 Max: 23.41
Current: 9.26
During the past 13 years, World Acceptance's highest Return-on-Tangible-Equity was 23.41%. The lowest was 5.99%. And the median was 12.99%.
WRLD's Return-on-Tangible-Equity is ranked better than 57.28% of 522
companies
in the Credit Services industry
Industry Median: 7.055
vs WRLD: 9.26
World Acceptance (NAS:WRLD) 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.
World Acceptance Return-on-Tangible-Equity Related Terms
World Acceptance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for World Acceptance'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.
WRLD vs JCAP, LU, FINV: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, World Acceptance'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.
World Acceptance Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, World Acceptance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where World Acceptance'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 42.55% mean?
World Acceptance (WRLD) has a Return-on-Tangible-Equity of 42.55% 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 World Acceptance and its competitors. This is 228% above median its historical median of 12.99. Over the past decade, World Acceptance's Return-on-Tangible-Equity has ranged from 5.99 to 23.41. According to the industry distribution chart, World Acceptance ranks #223 out of 522 companies in the Credit Services industry, placing it in the top 42.7%.
Is World Acceptance's Return-on-Tangible-Equity too high?
World Acceptance's current Return-on-Tangible-Equity of 42.55% is 228% above median its 10-year median of 12.99. Over the past 10 years, this metric has ranged from a low of 5.99 to a high of 23.41. The Credit Services industry median Return-on-Tangible-Equity is 7.06. World Acceptance's value of 42.55% is 503.1% above this industry median. Based on the distribution chart, World Acceptance ranks #223 out of 522 companies in the Credit Services industry, which is above the industry midpoint. Overall, World Acceptance has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does World Acceptance's Return-on-Tangible-Equity compare to JCAP and LU?
According to the Credit Services industry distribution chart, World Acceptance ranks #223 out of 522 companies for Return-on-Tangible-Equity. This puts World Acceptance in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.06. World Acceptance's value of 42.55% is 503.1% above this benchmark. Historically, World Acceptance's own Return-on-Tangible-Equity has ranged from 5.99 to 23.41 over the past decade. While the company's 10-year median is 12.99 vs. the industry median of 7.06, World Acceptance 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.06, based on 522 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. World Acceptance's current Return-on-Tangible-Equity of 42.55% is 503.1% 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 World Acceptance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. World Acceptance's current Return-on-Tangible-Equity is 42.55%, which is 228% above median its own 10-year median of 12.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is World Acceptance stock overvalued right now?
Based on GuruFocus' analysis, World Acceptance (WRLD) is currently considered Modestly Overvalued. The stock's GF Value™ is $160.05, compared to a current price of $207.84 — trading 29.9% above its estimated fair value. The current Return-on-Tangible-Equity is 42.55%, which is 228% above median its 10-year median of 12.99 and 503.1% above the Credit Services industry median of 7.06. World Acceptance's overall GF Score™ is 63/100 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 World Acceptance (WRLD), the current Return-on-Tangible-Equity is 42.55% 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 World Acceptance (WRLD) Overvalued in 2026?
Based on GuruFocus' analysis, World Acceptance stock appears to be overvalued.
The current stock price of $207.84 is trading 29.9% above its estimated GF Value™ of $160.05.
GuruFocus considers World Acceptance to be Modestly Overvalued.
Key valuation signals for WRLD:
Return-on-Tangible-Equity: 42.55% (228% above median its 10-year median of 12.99)
GF Value™: $160.05 vs. price of $207.84 (29.9% above fair value)
Industry Position: 503.1% above the Credit Services median (#223 of 522)
No single metric tells the full story. See the WRLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
World Acceptance Corp operates a small-loan consumer finance (installment loan) business. It offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. The Company generally serves individuals with limited access to other sources of consumer credit such as banks, credit unions, other consumer finance businesses and credit card lenders. The Company also offers income tax return preparation services to its loan customers and other individuals. The traditional installment loan industry is a fragmented segment of the consumer lending industry. The Company has one reportable segment: the consumer finance segment.
63GF Score
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