AF Legal GroupASX:AFL 49 Return-on-Tangible-Equity is 36.50% as of Dec. 2025. GuruFocus rates ASX:AFL with a GF Score™ of 49/100 and a GF Value™ of A$0.21 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 85 Personal Services companies, AF Legal Group ranks worse than 51.76% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AF Legal Group's annualized net income for the quarter that ended in Dec. 2025 was A$0.99 Mil. AF Legal Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$2.70 Mil. Therefore, AF Legal Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 36.50%.
The historical rank and industry rank for AF Legal Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:AFL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -330.69 Med: -18.74 Max: 28.19
Current: 11.86
During the past 13 years, AF Legal Group's highest Return-on-Tangible-Equity was 28.19%. The lowest was -330.69%. And the median was -18.74%.
ASX:AFL's Return-on-Tangible-Equity is ranked worse than 51.76% of 85
companies
in the Personal Services industry
Industry Median: 12.91
vs ASX:AFL: 11.86
AF Legal Group (ASX:AFL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
AF Legal Group Return-on-Tangible-Equity Related Terms
AF Legal Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AF Legal Group's Return-on-Tangible-Equity 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.
ASX:AFL vs ROL, SCI, FTDR: Return-on-Tangible-Equity Comparison
For the Personal Services subindustry, AF Legal Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
AF Legal Group Return-on-Tangible-Equity vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, AF Legal Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AF Legal Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 36.50% mean?
AF Legal Group (ASX:AFL) has a Return-on-Tangible-Equity of 36.50% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AF Legal Group and its competitors. According to the industry distribution chart, AF Legal Group ranks #44 out of 85 companies in the Personal Services industry, placing it in the top 51.8%.
Is AF Legal Group's Return-on-Tangible-Equity too high?
AF Legal Group's current Return-on-Tangible-Equity is 36.50%. The Personal Services industry median Return-on-Tangible-Equity is 12.91. AF Legal Group's value of 36.50% is 182.7% above this industry median. Based on the distribution chart, AF Legal Group ranks #44 out of 85 companies in the Personal Services industry, which is below the industry midpoint. Overall, AF Legal 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 AF Legal Group's Return-on-Tangible-Equity compare to ROL and SCI?
According to the Personal Services industry distribution chart, AF Legal Group ranks #44 out of 85 companies for Return-on-Tangible-Equity. This places AF Legal Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 12.91. AF Legal Group's value of 36.50% is 182.7% 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 Return-on-Tangible-Equity for a Personal Services company?
The median Return-on-Tangible-Equity among Personal Services companies is 12.91, based on 85 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AF Legal Group's current Return-on-Tangible-Equity of 36.50% is 182.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AF Legal Group and its competitors. For the Personal Services industry, the median Return-on-Tangible-Equity is 12.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AF Legal Group's current Return-on-Tangible-Equity is 36.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AF Legal Group stock overvalued right now?
Based on GuruFocus' analysis, AF Legal Group (ASX:AFL) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.21, compared to a current price of A$0.13 — trading 38.1% below its estimated fair value. The current Return-on-Tangible-Equity is 36.50% and 182.7% above the Personal Services industry median of 12.91. AF Legal Group's overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AF Legal Group (ASX:AFL), the current Return-on-Tangible-Equity is 36.50% as of Dec. 2025. 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 AF Legal Group (ASX:AFL) Overvalued in 2026?
Based on GuruFocus' analysis, AF Legal Group stock appears to be undervalued.
The current stock price of A$0.13 is trading 38.1% below its estimated GF Value™ of A$0.21.
GuruFocus considers AF Legal Group to be Possible Value Trap.
Key valuation signals for ASX:AFL:
Return-on-Tangible-Equity: 36.50%
GF Value™: A$0.21 vs. price of A$0.13 (38.1% below fair value)
Industry Position: 182.7% above the Personal Services median (#44 of 85)
No single metric tells the full story. See the ASX:AFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AF Legal Group Ltd is a law firm that specializes in family and relationship law and also in contested wills and estates law. The firm provides advice to clients in respect of divorce separation, property, and children's matters. Its services include property settlement, spousal maintenance, divorce, and separation, among others.
49GF Score
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