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.
* 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 REIT - Mortgage subindustry, Starwood Property Trust'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.
Starwood Property Trust ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Starwood Property Trust's ROE % distribution charts can be found below:
* The bar in red indicates where Starwood Property Trust'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.
Starwood Property Trust (STU:VSP) has a ROE % of 3.10% 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 Starwood Property Trust and its competitors. This is 63% below median its historical median of 8.46. Over the past decade, Starwood Property Trust's ROE % has ranged from 5.30 to 13.90. According to the industry distribution chart, Starwood Property Trust ranks #537 out of 933 companies in the REITs industry, placing it in the top 57.6%.
Is Starwood Property Trust's ROE % too high?
Starwood Property Trust's current ROE % of 3.10% is 63% below median its 10-year median of 8.46. Over the past 10 years, this metric has ranged from a low of 5.30 to a high of 13.90. The REITs industry median ROE % is 6.15. Starwood Property Trust's value of 3.10% is 49.6% below this industry median. Based on the distribution chart, Starwood Property Trust ranks #537 out of 933 companies in the REITs industry, which is below the industry midpoint. Overall, Starwood Property Trust has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Starwood Property Trust's ROE % compare to RITM and BXMT?
According to the REITs industry distribution chart, Starwood Property Trust ranks #537 out of 933 companies for ROE %. This places Starwood Property Trust in the lower half of its industry. The industry median ROE % is 6.15. Starwood Property Trust's value of 3.10% is 49.6% below this benchmark. Historically, Starwood Property Trust's own ROE % has ranged from 5.30 to 13.90 over the past decade. While the company's 10-year median is 8.46 vs. the industry median of 6.15, Starwood Property Trust has consistently been below 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 a REITs company?
The median ROE % among REITs companies is 6.15, based on 933 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. Starwood Property Trust's current ROE % of 3.10% is 49.6% below 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 Starwood Property Trust and its competitors. For the REITs industry, the median ROE % is 6.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starwood Property Trust's current ROE % is 3.10%, which is 63% below median its own 10-year median of 8.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starwood Property Trust stock overvalued right now?
Based on GuruFocus' analysis, Starwood Property Trust (STU:VSP) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.39, compared to a current price of €14.60 — trading 17.8% above its estimated fair value. The current ROE % is 3.10%, which is 63% below median its 10-year median of 8.46 and 49.6% below the REITs industry median of 6.15. Starwood Property Trust's overall GF Score™ is 51/100 with 5 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 Starwood Property Trust (STU:VSP), the current ROE % is 3.10% 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 Starwood Property Trust (STU:VSP) Overvalued in 2026?
Based on GuruFocus' analysis, Starwood Property Trust stock appears to be overvalued.
The current stock price of €14.60 is trading 17.8% above its estimated GF Value™ of €12.39.
GuruFocus considers Starwood Property Trust to be Modestly Overvalued.
Key valuation signals for STU:VSP:
ROE %: 3.10% (63% below median its 10-year median of 8.46)
GF Value™: €12.39 vs. price of €14.60 (17.8% above fair value)
Industry Position: 49.6% below the REITs median (#537 of 933)
No single metric tells the full story. See the STU:VSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Starwood Property Trust Inc is a real estate investment trust principally engaged in originating, acquiring, and managing commercial mortgage loans, commercial mortgage-backed securities, and other real estate investments in the U.S., Australia, and Europe. The company has four reportable business segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The majority of its revenue is generated from the Commercial and Residential Lending segment, which engages mainly in originating, acquiring, financing, and managing commercial first mortgages, non-agency residential mortgages (residential loans), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), and other real estate and related debt investments.
51GF Score
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