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The 5-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past five years. As of today (2026-09-17), Redwood Capital Bancorp's 5-Year Sortino Ratio is 0.76.
Redwood Capital Bancorp (OTCPK:RWCB) 5-Year Sortino Ratio Explanation
The 5-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past five year. It is calculated as the annualized result of the average five-year monthly excess returns divided by the standard deviation of negative returns in the five-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Redwood Capital Bancorp 5-Year Sortino Ratio Related Terms
RWCB vs STBI, NTBP, HLFN: 5-Year Sortino Ratio Comparison
For the Banks - Regional subindustry, Redwood Capital Bancorp's 5-Year Sortino Ratio, along with its competitors' market caps and 5-Year Sortino Ratio 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.
Redwood Capital Bancorp 5-Year Sortino Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Redwood Capital Bancorp's 5-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Redwood Capital Bancorp's 5-Year Sortino Ratio falls into.
Redwood Capital Bancorp 5-Year Sortino Ratio Calculation
The 5-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last five year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 5-Year Sortino Ratio can be calculated by dividing the difference between the five-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past five year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Redwood Capital Bancorp (RWCB) has a 5-Year Sortino Ratio of 0.76 as of Sep. 17, 2026. 5-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past five years. View historical data for Redwood Capital Bancorp and its competitors.
Is Redwood Capital Bancorp's 5-Year Sortino Ratio too high?
Redwood Capital Bancorp's current 5-Year Sortino Ratio is 0.76. Overall, Redwood Capital Bancorp has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Redwood Capital Bancorp's 5-Year Sortino Ratio compare to STBI and NTBP?
Redwood Capital Bancorp's 5-Year Sortino Ratio of 0.76 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Sortino Ratio for a Banks company?
A good 5-Year Sortino Ratio depends on the Banks industry context. However, 5-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Sortino Ratio mean?
A high 5-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 5-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past five years. View historical data for Redwood Capital Bancorp and its competitors. Redwood Capital Bancorp's current 5-Year Sortino Ratio is 0.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Capital Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Redwood Capital Bancorp (RWCB) is currently considered Modestly Overvalued. The stock's GF Value™ is $26.03, compared to a current price of $33.70 — trading 29.5% above its estimated fair value. The current 5-Year Sortino Ratio is 0.76. Redwood Capital Bancorp's overall GF Score™ is 62/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Sortino Ratio calculated?
5-Year Sortino Ratio is calculated from a company's financial statements. For Redwood Capital Bancorp (RWCB), the current 5-Year Sortino Ratio is 0.76 as of Sep. 17, 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 Redwood Capital Bancorp (RWCB) Overvalued in 2026?
Based on GuruFocus' analysis, Redwood Capital Bancorp stock appears to be overvalued.
The current stock price of $33.70 is trading 29.5% above its estimated GF Value™ of $26.03.
GuruFocus considers Redwood Capital Bancorp to be Modestly Overvalued.
Key valuation signals for RWCB:
5-Year Sortino Ratio: 0.76
GF Value™: $26.03 vs. price of $33.70 (29.5% above fair value)
No single metric tells the full story. See the RWCB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Redwood Capital Bancorp through its subsidiary provides various banking products and services. The company offers commercial, industrial, agricultural, residential and personal credit and other banking services through its branches located in Eureka, Fortuna, and Arcata, California. The Company has determined that its business is comprised of a single operating segment. Redwood Capital Bank has two branches in Eureka, one in Fortuna and one in Arcata, California.
62GF Score
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