Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Western Alliance Bancorp's 3-Year RORE % for the quarter that ended in Mar. 2026 was 9.52%.
The industry rank for Western Alliance Bancorp's 3-Year RORE % or its related term are showing as below:
WAL's 3-Year RORE % is ranked worse than 51.7% of 1472
companies
in the Banks industry
Industry Median: 9.93
vs WAL: 9.52
Western Alliance Bancorp (NYSE:WAL) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Western Alliance Bancorp 3-Year RORE % Related Terms
Western Alliance Bancorp 3-Year RORE % 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.
For the Banks - Regional subindustry, Western Alliance Bancorp's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Western Alliance Bancorp 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Western Alliance Bancorp's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Western Alliance Bancorp's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Western Alliance Bancorp (WAL) has a 3-Year RORE % of 9.52 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Western Alliance Bancorp and its competitors. According to the industry distribution chart, Western Alliance Bancorp ranks #761 out of 1472 companies in the Banks industry, placing it in the top 51.7%.
Is Western Alliance Bancorp's 3-Year RORE % too high?
Western Alliance Bancorp's current 3-Year RORE % is 9.52. The Banks industry median 3-Year RORE % is 9.93. Western Alliance Bancorp's value of 9.52 is 4.1% below this industry median. Based on the distribution chart, Western Alliance Bancorp ranks #761 out of 1472 companies in the Banks industry, which is below the industry midpoint. Overall, Western Alliance Bancorp has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Western Alliance Bancorp's 3-Year RORE % compare to COLB and BOKF?
According to the Banks industry distribution chart, Western Alliance Bancorp ranks #761 out of 1472 companies for 3-Year RORE %. This places Western Alliance Bancorp in the lower half of its industry. The industry median 3-Year RORE % is 9.93. Western Alliance Bancorp's value of 9.52 is 4.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Banks company?
The median 3-Year RORE % among Banks companies is 9.93, based on 1,472 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Western Alliance Bancorp's current 3-Year RORE % of 9.52 is 4.1% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Western Alliance Bancorp and its competitors. For the Banks industry, the median 3-Year RORE % is 9.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Alliance Bancorp's current 3-Year RORE % is 9.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Alliance Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Western Alliance Bancorp (WAL) is currently considered Modestly Undervalued. The stock's GF Value™ is $92.43, compared to a current price of $81.54 — trading 11.8% below its estimated fair value. The current 3-Year RORE % is 9.52 and 4.1% below the Banks industry median of 9.93. Western Alliance Bancorp's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Western Alliance Bancorp (WAL), the current 3-Year RORE % is 9.52 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 Western Alliance Bancorp (WAL) Overvalued in 2026?
Based on GuruFocus' analysis, Western Alliance Bancorp stock appears to be undervalued.
The current stock price of $81.54 is trading 11.8% below its estimated GF Value™ of $92.43.
GuruFocus considers Western Alliance Bancorp to be Modestly Undervalued.
Key valuation signals for WAL:
3-Year RORE %: 9.52
GF Value™: $92.43 vs. price of $81.54 (11.8% below fair value)
Industry Position: 4.1% below the Banks median (#761 of 1472)
No single metric tells the full story. See the WAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Alliance Bancorp provides a full spectrum of customized loan, deposit, and treasury management capabilities, including funds transfer and other digital payment offerings. The company's reportable segments are Commercial segment includes provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry. Consumer Related segment offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and Corporate & Other.
86GF Score
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