Toll BrothersLTS:0LFS +1.04%94 Return-on-Tangible-Asset is 7.20% as of Apr. 2026, which is 4% below its 10-year median of 7.49. GuruFocus rates LTS:0LFS with a GF Score™ of 94/100 and a GF Value™ of $138.37 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 95 Homebuilding & Construction companies, Toll Brothers ranks better than 86.32% 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. Toll Brothers's annualizedNet Income for the quarter that ended in Apr. 2026 was $1,042 Mil. Toll Brothers's average total tangible assets for the quarter that ended in Apr. 2026 was $14,483 Mil. Therefore, Toll Brothers's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 7.20%.
The historical rank and industry rank for Toll Brothers's Return-on-Tangible-Asset or its related term are showing as below:
LTS:0LFS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.03 Med: 7.49 Max: 12.14
Current: 8.93
During the past 13 years, Toll Brothers's highest Return-on-Tangible-Asset was 12.14%. The lowest was 4.03%. And the median was 7.49%.
LTS:0LFS's Return-on-Tangible-Asset is ranked better than 86.32% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 3.2
vs LTS:0LFS: 8.93
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.
Toll Brothers Return-on-Tangible-Asset Related Terms
Toll Brothers Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Toll Brothers'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.
LTS:0LFS vs NVR, LEN, TMHC: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, Toll Brothers'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.
Toll Brothers Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Toll Brothers'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 (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.20% mean?
Toll Brothers (LTS:0LFS) has a Return-on-Tangible-Asset of 7.20% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Toll Brothers and its competitors. This is near median its historical median of 7.49. Over the past decade, Toll Brothers' Return-on-Tangible-Asset has ranged from 4.03 to 12.14. According to the industry distribution chart, Toll Brothers ranks #13 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 13.7%.
Is Toll Brothers' Return-on-Tangible-Asset too high?
Toll Brothers' current Return-on-Tangible-Asset of 7.20% is near median its 10-year median of 7.49. Over the past 10 years, this metric has ranged from a low of 4.03 to a high of 12.14. The Homebuilding & Construction industry median Return-on-Tangible-Asset is 3.20. Toll Brothers' value of 7.20% is 125% above this industry median. Based on the distribution chart, Toll Brothers ranks #13 out of 95 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Toll Brothers has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' Return-on-Tangible-Asset compare to NVR and LEN?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #13 out of 95 companies for Return-on-Tangible-Asset. This places Toll Brothers in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.20. Toll Brothers' value of 7.20% is 125% above this benchmark. Historically, Toll Brothers' own Return-on-Tangible-Asset has ranged from 4.03 to 12.14 over the past decade. While the company's 10-year median is 7.49 vs. the industry median of 3.20, Toll Brothers 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 Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.20, based on 95 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. Toll Brothers's current Return-on-Tangible-Asset of 7.20% is 125% 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 Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current Return-on-Tangible-Asset is 7.20%, which is near median its own 10-year median of 7.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (LTS:0LFS) is currently considered Modestly Overvalued. The stock's GF Value™ is $138.37, compared to a current price of $151.22 — trading 9.3% above its estimated fair value. The current Return-on-Tangible-Asset is 7.20%, which is near median its 10-year median of 7.49 and 125% above the Homebuilding & Construction industry median of 3.20. Toll Brothers' overall GF Score™ is 94/100 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 Toll Brothers (LTS:0LFS), the current Return-on-Tangible-Asset is 7.20% as of Apr. 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 Toll Brothers (LTS:0LFS) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of $151.22 is trading 9.3% above its estimated GF Value™ of $138.37.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for LTS:0LFS:
Return-on-Tangible-Asset: 7.20% (near median its 10-year median of 7.49)
GF Value™: $138.37 vs. price of $151.22 (9.3% above fair value)
Industry Position: 125% above the Homebuilding & Construction median (#13 of 95)
No single metric tells the full story. See the LTS:0LFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
94GF Score
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