LPL Financial HoldingsLPLA +1.81%81 Return-on-Tangible-Asset is 11.28% as of Mar. 2026, which is 2% below its 10-year median of 11.53. GuruFocus rates LPLA with a GF Score™ of 81/100 and a GF Value™ of $465.56 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 815 Capital Markets companies, LPL Financial Holdings ranks better than 80.25% 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. LPL Financial Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,426 Mil. LPL Financial Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $12,640 Mil. Therefore, LPL Financial Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 11.28%.
The historical rank and industry rank for LPL Financial Holdings's Return-on-Tangible-Asset or its related term are showing as below:
LPLA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.53 Med: 11.53 Max: 15.05
Current: 7.37
During the past 13 years, LPL Financial Holdings's highest Return-on-Tangible-Asset was 15.05%. The lowest was 6.53%. And the median was 11.53%.
LPLA's Return-on-Tangible-Asset is ranked better than 80.25% of 815
companies
in the Capital Markets industry
Industry Median: 1.54
vs LPLA: 7.37
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.
LPL Financial Holdings Return-on-Tangible-Asset Related Terms
LPL Financial Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for LPL Financial Holdings'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.
LPLA vs TW, CRCL, IREN: Return-on-Tangible-Asset Comparison
For the Capital Markets subindustry, LPL Financial Holdings'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.
LPL Financial Holdings Return-on-Tangible-Asset vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings'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 11.28% mean?
LPL Financial Holdings (LPLA) has a Return-on-Tangible-Asset of 11.28% 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 LPL Financial Holdings and its competitors. This is near median its historical median of 11.53. Over the past decade, LPL Financial Holdings' Return-on-Tangible-Asset has ranged from 6.53 to 15.05. According to the industry distribution chart, LPL Financial Holdings ranks #161 out of 815 companies in the Capital Markets industry, placing it in the top 19.8%.
Is LPL Financial Holdings' Return-on-Tangible-Asset too high?
LPL Financial Holdings' current Return-on-Tangible-Asset of 11.28% is near median its 10-year median of 11.53. Over the past 10 years, this metric has ranged from a low of 6.53 to a high of 15.05. The Capital Markets industry median Return-on-Tangible-Asset is 1.54. LPL Financial Holdings' value of 11.28% is 632.5% above this industry median. Based on the distribution chart, LPL Financial Holdings ranks #161 out of 815 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, LPL Financial Holdings has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Return-on-Tangible-Asset compare to TW and CRCL?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #161 out of 815 companies for Return-on-Tangible-Asset. This places LPL Financial Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.54. LPL Financial Holdings' value of 11.28% is 632.5% above this benchmark. Historically, LPL Financial Holdings' own Return-on-Tangible-Asset has ranged from 6.53 to 15.05 over the past decade. While the company's 10-year median is 11.53 vs. the industry median of 1.54, LPL Financial Holdings 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 1.54, based on 815 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. LPL Financial Holdings's current Return-on-Tangible-Asset of 11.28% is 632.5% 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 LPL Financial Holdings and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Asset is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current Return-on-Tangible-Asset is 11.28%, which is near median its own 10-year median of 11.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $465.56, compared to a current price of $316.86 — trading 31.9% below its estimated fair value. The current Return-on-Tangible-Asset is 11.28%, which is near median its 10-year median of 11.53 and 632.5% above the Capital Markets industry median of 1.54. LPL Financial Holdings' overall GF Score™ is 81/100 with 4 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 LPL Financial Holdings (LPLA), the current Return-on-Tangible-Asset is 11.28% 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 LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $316.86 is trading 31.9% below its estimated GF Value™ of $465.56.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
Return-on-Tangible-Asset: 11.28% (near median its 10-year median of 11.53)
GF Value™: $465.56 vs. price of $316.86 (31.9% below fair value)
Industry Position: 632.5% above the Capital Markets median (#161 of 815)
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
81GF Score
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