Gladstone CapitalFRA:1G70 +1.81%40 ROE % is 13.46% as of Mar. 2026, which is 65% above its 10-year median of 8.17. GuruFocus rates FRA:1G70 with a GF Score™ of 40/100 and a GF Value™ of €11.16 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,608 Asset Management companies, Gladstone Capital ranks better than 60.45% on this metric.
The historical rank and industry rank for Gladstone Capital's ROE % or its related term are showing as below:
FRA:1G70'
s ROE % Range Over the Past 10 Years
Min: -0.78 Med: 8.17 Max: 30.53
Current: 9.18
During the past 13 years, Gladstone Capital's highest ROE % was 30.53%. The lowest was -0.78%. And the median was 8.17%.
FRA:1G70's ROE % is ranked better than 60.45% of 1608
companies
in the Asset Management industry
Industry Median: 6.52
vs FRA:1G70: 9.18
Gladstone Capital (FRA:1G70) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Gladstone Capital ROE % Related Terms
Gladstone Capital ROE % Historical Data
* Premium members only.
The historical data trend for Gladstone Capital's ROE % 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.
For the Asset Management subindustry, Gladstone Capital's ROE %, along with its competitors' market caps and ROE % 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.
Gladstone Capital ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Gladstone Capital's ROE % distribution charts can be found below:
* The bar in red indicates where Gladstone Capital's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Gladstone Capital (FRA:1G70) has a ROE % of 13.46% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gladstone Capital and its competitors. This is 65% above median its historical median of 8.17. According to the industry distribution chart, Gladstone Capital ranks #636 out of 1608 companies in the Asset Management industry, placing it in the top 39.6%.
Is Gladstone Capital's ROE % too high?
Gladstone Capital's current ROE % of 13.46% is 65% above median its 10-year median of 8.17. The Asset Management industry median ROE % is 6.52. Gladstone Capital's value of 13.46% is 106.4% above this industry median. Based on the distribution chart, Gladstone Capital ranks #636 out of 1608 companies in the Asset Management industry, which is above the industry midpoint. Overall, Gladstone Capital has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gladstone Capital's ROE % compare to HPI and ISD?
According to the Asset Management industry distribution chart, Gladstone Capital ranks #636 out of 1608 companies for ROE %. This puts Gladstone Capital in the upper half of its industry. The industry median ROE % is 6.52. Gladstone Capital's value of 13.46% is 106.4% above this benchmark. While the company's 10-year median is 8.17 vs. the industry median of 6.52, Gladstone Capital 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.52, based on 1,608 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gladstone Capital's current ROE % of 13.46% is 106.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gladstone Capital and its competitors. For the Asset Management industry, the median ROE % is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gladstone Capital's current ROE % is 13.46%, which is 65% above median its own 10-year median of 8.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gladstone Capital stock overvalued right now?
Based on GuruFocus' analysis, Gladstone Capital (FRA:1G70) is currently considered Significantly Overvalued. The stock's GF Value™ is €11.16, compared to a current price of €16.85 — trading 51% above its estimated fair value. The current ROE % is 13.46%, which is 65% above median its 10-year median of 8.17 and 106.4% above the Asset Management industry median of 6.52. Gladstone Capital's overall GF Score™ is 40/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Gladstone Capital (FRA:1G70), the current ROE % is 13.46% 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 Gladstone Capital (FRA:1G70) Overvalued in 2026?
Based on GuruFocus' analysis, Gladstone Capital stock appears to be overvalued.
The current stock price of €16.85 is trading 51% above its estimated GF Value™ of €11.16.
GuruFocus considers Gladstone Capital to be Significantly Overvalued.
Key valuation signals for FRA:1G70:
ROE %: 13.46% (65% above median its 10-year median of 8.17)
GF Value™: €11.16 vs. price of €16.85 (51% above fair value)
Industry Position: 106.4% above the Asset Management median (#636 of 1608)
No single metric tells the full story. See the FRA:1G70 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gladstone Capital Corp is an externally managed, closed-end, non-diversified management investment company. Its investment objectives are to, achieve and grow current income by investing in debt securities of established businesses that would provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness, and make distributions to stockholders that grow over time; and provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that can grow over time to permit it to sell its equity investments for capital gains.
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