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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Generation Development Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.57. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Generation Development Group's Degree of Operating Leverage or its related term are showing as below:
ASX:GDG's Degree of Operating Leverage is ranked worse than 66.67% of 636
companies
in the Asset Management industry
Industry Median: 0.58
vs ASX:GDG: 1.57
Generation Development Group (ASX:GDG) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Generation Development Group Degree of Operating Leverage Related Terms
Generation Development Group Degree of Operating Leverage 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.
Generation Development Group Degree of Operating Leverage Chart
ASX:GDG vs BLK, BX, KKR: Degree of Operating Leverage Comparison
For the Asset Management subindustry, Generation Development Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Generation Development Group Degree of Operating Leverage vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Generation Development Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Generation Development Group's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.57 mean?
Generation Development Group (ASX:GDG) has a Degree of Operating Leverage of 1.57 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Generation Development Group and its competitors. According to the industry distribution chart, Generation Development Group ranks #424 out of 636 companies in the Asset Management industry, placing it in the top 66.7%.
Is Generation Development Group's Degree of Operating Leverage too high?
Generation Development Group's current Degree of Operating Leverage is 1.57. The Asset Management industry median Degree of Operating Leverage is 0.58. Generation Development Group's value of 1.57 is 170.7% above this industry median. Based on the distribution chart, Generation Development Group ranks #424 out of 636 companies in the Asset Management industry, which is below the industry midpoint. Overall, Generation Development Group has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Generation Development Group's Degree of Operating Leverage compare to BLK and BX?
According to the Asset Management industry distribution chart, Generation Development Group ranks #424 out of 636 companies for Degree of Operating Leverage. This places Generation Development Group in the lower half of its industry. The industry median Degree of Operating Leverage is 0.58. Generation Development Group's value of 1.57 is 170.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Asset Management company?
The median Degree of Operating Leverage among Asset Management companies is 0.58, based on 636 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Generation Development Group's current Degree of Operating Leverage of 1.57 is 170.7% 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Generation Development Group and its competitors. For the Asset Management industry, the median Degree of Operating Leverage is 0.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generation Development Group's current Degree of Operating Leverage is 1.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generation Development Group stock overvalued right now?
Based on GuruFocus' analysis, Generation Development Group (ASX:GDG) is currently considered Possible Value Trap. The stock's GF Value™ is A$8.02, compared to a current price of A$3.20 — trading 60.1% below its estimated fair value. The current Degree of Operating Leverage is 1.57 and 170.7% above the Asset Management industry median of 0.58. Generation Development Group's overall GF Score™ is 49/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Generation Development Group (ASX:GDG), the current Degree of Operating Leverage is 1.57 as of Jun. 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 Generation Development Group (ASX:GDG) Overvalued in 2026?
Based on GuruFocus' analysis, Generation Development Group stock appears to be undervalued.
The current stock price of A$3.20 is trading 60.1% below its estimated GF Value™ of A$8.02.
GuruFocus considers Generation Development Group to be Possible Value Trap.
Key valuation signals for ASX:GDG:
Degree of Operating Leverage: 1.57
GF Value™: A$8.02 vs. price of A$3.20 (60.1% below fair value)
Industry Position: 170.7% above the Asset Management median (#424 of 636)
No single metric tells the full story. See the ASX:GDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1991, Generation originally operated as a pooled development fund, focusing on providing capital to businesses in financial services. Today, the firm is structured across three key business lines within wealth management. The first is through Generation Life, the market leader in investment bonds by in-flows, which offers tax-effective products, including investment bonds and annuities. The second business line is Lonsec, a prominent research and ratings provider to the Australian financial services sector, competing against Morningstar and Zenith. The third division provides managed account solutions, a result of the merger between Evidentia and Lonsec Investment Solutions, offering individually owned accounts professionally managed by experienced portfolio managers.
49GF Score
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