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Houlihan LokeyFRA:2HL +2.82%83 Return-on-Tangible-Asset is 15.59% as of Mar. 2026, which is 31% below its 10-year median of 22.57. GuruFocus rates FRA:2HL with a GF Score™ of 83/100 and a GF Value™ of €166.92 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 816 Capital Markets companies, Houlihan Lokey ranks better than 91.3% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Houlihan Lokey's annualizedNet Income for the quarter that ended in Mar. 2026 was €345 Mil. Houlihan Lokey's average total tangible assets for the quarter that ended in Mar. 2026 was €2,215 Mil. Therefore, Houlihan Lokey's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 15.59%.
The historical rank and industry rank for Houlihan Lokey's Return-on-Tangible-Asset or its related term are showing as below:
FRA:2HL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 15.66 Med: 22.57 Max: 27.98
Current: 18.05
During the past 13 years, Houlihan Lokey's highest Return-on-Tangible-Asset was 27.98%. The lowest was 15.66%. And the median was 22.57%.
FRA:2HL's Return-on-Tangible-Asset is ranked better than 91.3% of 816
companies
in the Capital Markets industry
Industry Median: 1.545
vs FRA:2HL: 18.05
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Houlihan Lokey Return-on-Tangible-Asset Related Terms
Houlihan Lokey Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Houlihan Lokey's Return-on-Tangible-Asset 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.
FRA:2HL vs BMNR, WULF, SNEX: Return-on-Tangible-Asset Comparison
For the Capital Markets subindustry, Houlihan Lokey's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Houlihan Lokey Return-on-Tangible-Asset vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Houlihan Lokey's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 15.59% mean?
Houlihan Lokey (FRA:2HL) has a Return-on-Tangible-Asset of 15.59% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Houlihan Lokey and its competitors. This is 31% below median its historical median of 22.57. Over the past decade, Houlihan Lokey's Return-on-Tangible-Asset has ranged from 15.66 to 27.98. According to the industry distribution chart, Houlihan Lokey ranks #71 out of 816 companies in the Capital Markets industry, placing it in the top 8.7%.
Is Houlihan Lokey's Return-on-Tangible-Asset too high?
Houlihan Lokey's current Return-on-Tangible-Asset of 15.59% is 31% below median its 10-year median of 22.57. Over the past 10 years, this metric has ranged from a low of 15.66 to a high of 27.98. The Capital Markets industry median Return-on-Tangible-Asset is 1.55. Houlihan Lokey's value of 15.59% is 909.1% above this industry median. Based on the distribution chart, Houlihan Lokey ranks #71 out of 816 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Houlihan Lokey has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Houlihan Lokey's Return-on-Tangible-Asset compare to BMNR and WULF?
According to the Capital Markets industry distribution chart, Houlihan Lokey ranks #71 out of 816 companies for Return-on-Tangible-Asset. This places Houlihan Lokey in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.55. Houlihan Lokey's value of 15.59% is 909.1% above this benchmark. Historically, Houlihan Lokey's own Return-on-Tangible-Asset has ranged from 15.66 to 27.98 over the past decade. While the company's 10-year median is 22.57 vs. the industry median of 1.55, Houlihan Lokey has consistently been above 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 Return-on-Tangible-Asset for a Capital Markets company?
The median Return-on-Tangible-Asset among Capital Markets companies is 1.55, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Houlihan Lokey's current Return-on-Tangible-Asset of 15.59% is 909.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Houlihan Lokey and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Asset is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houlihan Lokey's current Return-on-Tangible-Asset is 15.59%, which is 31% below median its own 10-year median of 22.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houlihan Lokey stock overvalued right now?
Based on GuruFocus' analysis, Houlihan Lokey (FRA:2HL) is currently considered Modestly Undervalued. The stock's GF Value™ is €166.92, compared to a current price of €127.60 — trading 23.6% below its estimated fair value. The current Return-on-Tangible-Asset is 15.59%, which is 31% below median its 10-year median of 22.57 and 909.1% above the Capital Markets industry median of 1.55. Houlihan Lokey's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Houlihan Lokey (FRA:2HL), the current Return-on-Tangible-Asset is 15.59% 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 Houlihan Lokey (FRA:2HL) Overvalued in 2026?
Based on GuruFocus' analysis, Houlihan Lokey stock appears to be undervalued.
The current stock price of €127.60 is trading 23.6% below its estimated GF Value™ of €166.92.
GuruFocus considers Houlihan Lokey to be Modestly Undervalued.
Key valuation signals for FRA:2HL:
Return-on-Tangible-Asset: 15.59% (31% below median its 10-year median of 22.57)
GF Value™: €166.92 vs. price of €127.60 (23.6% below fair value)
Industry Position: 909.1% above the Capital Markets median (#71 of 816)
No single metric tells the full story. See the FRA:2HL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. The Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
83GF Score
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