GURUFOCUS.COM » STOCK LIST » USA » NAS » Value Line Inc (NAS:VALU) » Definitions » ROE %
Switch to:

Value Line (NAS:VALU) ROE %

: 25.84% (As of Jan. 2023)
View and export this data going back to 1983. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Value Line's annualized net income for the quarter that ended in Jan. 2023 was $20.99 Mil. Value Line's average Total Stockholders Equity over the quarter that ended in Jan. 2023 was $81.22 Mil. Therefore, Value Line's annualized ROE % for the quarter that ended in Jan. 2023 was 25.84%.

The historical rank and industry rank for Value Line's ROE % or its related term are showing as below:

VALU' s ROE % Range Over the Past 10 Years
Min: 20.27   Med: 27.5   Max: 38.62
Current: 22.26

During the past 13 years, Value Line's highest ROE % was 38.62%. The lowest was 20.27%. And the median was 27.50%.

VALU's ROE % is ranked better than
87.24% of 768 companies
in the Capital Markets industry
Industry Median: 4.31 vs VALU: 22.26

Value Line ROE % Historical Data

The historical data trend for Value Line'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.

* Premium members only.

Value Line Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.21 26.37 29.57 38.62 32.49

Value Line Quarterly Data
Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.77 19.15 22.43 21.71 25.84

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Value Line'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.

   

Value Line ROE % Distribution

For the Capital Markets industry and Financial Services sector, Value Line's ROE % distribution charts can be found below:

* The bar in red indicates where Value Line's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



Value Line ROE % Calculation

Value Line's annualized ROE % for the fiscal year that ended in Apr. 2022 is calculated as

ROE %=Net Income (A: Apr. 2022 )/( (Total Stockholders Equity (A: Apr. 2021 )+Total Stockholders Equity (A: Apr. 2022 ))/ count )
=23.822/( (67.013+79.645)/ 2 )
=23.822/73.329
=32.49 %

Value Line's annualized ROE % for the quarter that ended in Jan. 2023 is calculated as

ROE %=Net Income (Q: Jan. 2023 )/( (Total Stockholders Equity (Q: Oct. 2022 )+Total Stockholders Equity (Q: Jan. 2023 ))/ count )
=20.992/( (80.22+82.226)/ 2 )
=20.992/81.223
=25.84 %

* 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 (Jan. 2023) net income data. ROE % is displayed in the 30-year financial page.


Value Line  (NAS:VALU) 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:

ROE %(Q: Jan. 2023 )
=Net Income/Total Stockholders Equity
=20.992/81.223
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(20.992 / 39.868)*(39.868 / 128.602)*(128.602 / 81.223)
=Net Margin %*Asset Turnover*Equity Multiplier
=52.65 %*0.31*1.5833
=ROA %*Equity Multiplier
=16.32 %*1.5833
=25.84 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jan. 2023 )
=Net Income/Total Stockholders Equity
=20.992/81.223
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (20.992 / 27.676) * (27.676 / 11.936) * (11.936 / 39.868) * (39.868 / 128.602) * (128.602 / 81.223)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7585 * 2.3187 * 29.94 % * 0.31 * 1.5833
=25.84 %

Note: The net income data used here is four times the quarterly (Jan. 2023) net income data. The Revenue data used here is four times the quarterly (Jan. 2023) 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.


Value Line ROE % Related Terms

Thank you for viewing the detailed overview of Value Line's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Value Line (NAS:VALU) Business Description

Value Line logo
Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Glenn J. Muenzer director 357 HARVARD COURT, EAST MEADOW NY 11554
Howard A Brecher director, officer: Acting Chairman and Acting CEO VALUE LINE 220 E 42ND ST, SUITE 600, NEW YORK NY 10017
Mary Bernstein director 220 E 42ND STREET, NEW YORK NY 10017
Alfred R Fiore director 1 ANGORA ROAD, WESTPORT CT 06880
William Edward Reed director 12 KNORR STREET, NORWALK CT 06854
Stephen P Davis director 57 EAST 95TH STREET, NEW YORK NY 10128
Thomas Sarkany director, officer: Secretary 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK NY 10017
Robert M. Perkins, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Ruth O. Legon, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Janet Eakman director 220 E 42ND STREET, NEW YORK NY 10017
Mitchell Eric Appel officer: CFO VALUE LINE INC, 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Edward J Shanahan director 220 EAST 42 STREET, NEW YORK NY 10017
Marianne B Asher director
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Edgar A Buttner director C/O VALUE LINE, 220 E 42ND STREET, NEW YORK NY 10017

Value Line (NAS:VALU) Headlines