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. Generation Development Group's annualized net income for the quarter that ended in Dec. 2025 was A$13.7 Mil. Generation Development Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$-34.5 Mil. Therefore, Generation Development Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Generation Development Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:GDG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.27 Med: 6.06 Max: 42.85
Current: 42.85
During the past 13 years, Generation Development Group's highest Return-on-Tangible-Equity was 42.85%. The lowest was -9.27%. And the median was 6.06%.
ASX:GDG's Return-on-Tangible-Equity is ranked better than 92.13% of 1588
companies
in the Asset Management industry
Industry Median: 7.165
vs ASX:GDG: 42.85
Generation Development Group (ASX:GDG) 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.
Generation Development Group Return-on-Tangible-Equity Related Terms
Generation Development Group Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
ASX:GDG vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Generation Development 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.
Generation Development Group Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Generation Development Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Generation Development 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 Negative Tangible Equity% mean?
Generation Development Group (ASX:GDG) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Generation Development Group and its competitors. According to the industry distribution chart, Generation Development Group ranks #125 out of 1588 companies in the Asset Management industry, placing it in the top 7.9%.
Is Generation Development Group's Return-on-Tangible-Equity too high?
Generation Development Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Generation Development Group ranks #125 out of 1588 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Generation Development Group has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Generation Development Group's Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, Generation Development Group ranks #125 out of 1588 companies for Return-on-Tangible-Equity. This places Generation Development Group in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.17. 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.17, based on 1,588 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. 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 Generation Development Group and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generation Development Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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$7.16, compared to a current price of A$3.58 — trading 50% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Generation Development Group's overall GF Score™ is 57/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Generation Development Group (ASX:GDG), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 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$3.58 is trading 50% below its estimated GF Value™ of A$7.16.
GuruFocus considers Generation Development Group to be Possible Value Trap.
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.
57GF Score
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