XPXP -0.12%71 Return-on-Tangible-Equity is 26.46% as of Mar. 2026, which is 1% above its 10-year median of 26.13. GuruFocus rates XP with a GF Score™ of 71/100 and a GF Value™ of $34.38 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 783 Capital Markets companies, XP ranks better than 83.4% 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. XP's annualized net income for the quarter that ended in Mar. 2026 was $1,008 Mil. XP's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,809 Mil. Therefore, XP's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.46%.
The historical rank and industry rank for XP's Return-on-Tangible-Equity or its related term are showing as below:
XP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.5 Med: 26.13 Max: 62.65
Current: 28.13
During the past 10 years, XP's highest Return-on-Tangible-Equity was 62.65%. The lowest was 22.50%. And the median was 26.13%.
XP's Return-on-Tangible-Equity is ranked better than 83.4% of 783
companies
in the Capital Markets industry
Industry Median: 6.45
vs XP: 28.13
XP (NAS:XP) 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.
XP Return-on-Tangible-Equity Related Terms
XP Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for XP'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.
XP vs BMNR, HLI, JEF: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, XP'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.
XP Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, XP's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where XP'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 26.46% mean?
XP (XP) has a Return-on-Tangible-Equity of 26.46% 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 XP and its competitors. This is near median its historical median of 26.13. Over the past decade, XP's Return-on-Tangible-Equity has ranged from 22.50 to 62.65. According to the industry distribution chart, XP ranks #130 out of 783 companies in the Capital Markets industry, placing it in the top 16.6%.
Is XP's Return-on-Tangible-Equity too high?
XP's current Return-on-Tangible-Equity of 26.46% is near median its 10-year median of 26.13. Over the past 10 years, this metric has ranged from a low of 22.50 to a high of 62.65. The Capital Markets industry median Return-on-Tangible-Equity is 6.45. XP's value of 26.46% is 310.2% above this industry median. Based on the distribution chart, XP ranks #130 out of 783 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, XP has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does XP's Return-on-Tangible-Equity compare to BMNR and HLI?
According to the Capital Markets industry distribution chart, XP ranks #130 out of 783 companies for Return-on-Tangible-Equity. This places XP in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.45. XP's value of 26.46% is 310.2% above this benchmark. Historically, XP's own Return-on-Tangible-Equity has ranged from 22.50 to 62.65 over the past decade. While the company's 10-year median is 26.13 vs. the industry median of 6.45, XP 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.45, based on 783 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. XP's current Return-on-Tangible-Equity of 26.46% is 310.2% 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 XP and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XP's current Return-on-Tangible-Equity is 26.46%, which is near median its own 10-year median of 26.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XP stock overvalued right now?
Based on GuruFocus' analysis, XP (XP) is currently considered Possible Value Trap. The stock's GF Value™ is $34.38, compared to a current price of $16.16 — trading 53% below its estimated fair value. The current Return-on-Tangible-Equity is 26.46%, which is near median its 10-year median of 26.13 and 310.2% above the Capital Markets industry median of 6.45. XP's overall GF Score™ is 71/100 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 XP (XP), the current Return-on-Tangible-Equity is 26.46% 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 XP (XP) Overvalued in 2026?
Based on GuruFocus' analysis, XP stock appears to be undervalued.
The current stock price of $16.16 is trading 53% below its estimated GF Value™ of $34.38.
GuruFocus considers XP to be Possible Value Trap.
Key valuation signals for XP:
Return-on-Tangible-Equity: 26.46% (near median its 10-year median of 26.13)
GF Value™: $34.38 vs. price of $16.16 (53% below fair value)
Industry Position: 310.2% above the Capital Markets median (#130 of 783)
No single metric tells the full story. See the XP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XP Inc is a Cayman Island-based technology-driven financial services platform. It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment such as monitoring operations, making decisions on fund allocation, and evaluating the performance. It generates revenue through the Brokerage commission. Geographically, the company derives maximum revenue from Brazil and also has its presence in other countries.
71GF Score
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