London City EquitiesASX:LCE 72 Return-on-Tangible-Equity is 1.34% as of Dec. 2025, which is 191% above its 10-year median of 0.46. GuruFocus rates ASX:LCE with a GF Score™ of 72/100 and a GF Value™ of A$1.09 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,588 Asset Management companies, London City Equities ranks worse than 70.65% 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. London City Equities's annualized net income for the quarter that ended in Dec. 2025 was A$0.35 Mil. London City Equities's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$26.24 Mil. Therefore, London City Equities's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 1.34%.
The historical rank and industry rank for London City Equities's Return-on-Tangible-Equity or its related term are showing as below:
ASX:LCE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.22 Med: 0.46 Max: 10.25
Current: 1.51
During the past 13 years, London City Equities's highest Return-on-Tangible-Equity was 10.25%. The lowest was -0.22%. And the median was 0.46%.
ASX:LCE's Return-on-Tangible-Equity is ranked worse than 70.65% of 1588
companies
in the Asset Management industry
Industry Median: 7.19
vs ASX:LCE: 1.51
London City Equities (ASX:LCE) 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.
London City Equities Return-on-Tangible-Equity Related Terms
London City Equities Return-on-Tangible-Equity Historical Data
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The historical data trend for London City Equities'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.
London City Equities Return-on-Tangible-Equity Chart
ASX:LCE vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, London City Equities'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.
London City Equities Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, London City Equities's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where London City Equities'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 1.34% mean?
London City Equities (ASX:LCE) has a Return-on-Tangible-Equity of 1.34% 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 London City Equities and its competitors. This is 191% above median its historical median of 0.46. According to the industry distribution chart, London City Equities ranks #1122 out of 1588 companies in the Asset Management industry, placing it in the top 70.7%.
Is London City Equities' Return-on-Tangible-Equity too high?
London City Equities' current Return-on-Tangible-Equity of 1.34% is 191% above median its 10-year median of 0.46. The Asset Management industry median Return-on-Tangible-Equity is 7.19. London City Equities' value of 1.34% is 81.4% below this industry median. Based on the distribution chart, London City Equities ranks #1122 out of 1588 companies in the Asset Management industry, which is below the industry midpoint. Overall, London City Equities has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London City Equities' Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, London City Equities ranks #1122 out of 1588 companies for Return-on-Tangible-Equity. This places London City Equities in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.19. London City Equities' value of 1.34% is 81.4% below this benchmark. While the company's 10-year median is 0.46 vs. the industry median of 7.19, London City Equities has consistently been below 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-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.19, 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. London City Equities's current Return-on-Tangible-Equity of 1.34% is 81.4% below 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 London City Equities and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London City Equities's current Return-on-Tangible-Equity is 1.34%, which is 191% above median its own 10-year median of 0.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London City Equities stock overvalued right now?
Based on GuruFocus' analysis, London City Equities (ASX:LCE) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.09, compared to a current price of A$0.85 — trading 22% below its estimated fair value. The current Return-on-Tangible-Equity is 1.34%, which is 191% above median its 10-year median of 0.46 and 81.4% below the Asset Management industry median of 7.19. London City Equities' overall GF Score™ is 72/100 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 London City Equities (ASX:LCE), the current Return-on-Tangible-Equity is 1.34% 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 London City Equities (ASX:LCE) Overvalued in 2026?
Based on GuruFocus' analysis, London City Equities stock appears to be undervalued.
The current stock price of A$0.85 is trading 22% below its estimated GF Value™ of A$1.09.
GuruFocus considers London City Equities to be Modestly Undervalued.
Key valuation signals for ASX:LCE:
Return-on-Tangible-Equity: 1.34% (191% above median its 10-year median of 0.46)
GF Value™: A$1.09 vs. price of A$0.85 (22% below fair value)
Industry Position: 81.4% below the Asset Management median (#1122 of 1588)
No single metric tells the full story. See the ASX:LCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
London City Equities Ltd is a holding company engaged in investing in Australian equities with market shares and offering growth. The company focuses on providing shareholders with attractive investment returns over the medium to longer terms by enhancing capital growth and paying dividends that, over time, grow faster than the rate of inflation. Its operating segments are Equity Investment, which is the company's key revenue-generating segment, and Other.
72GF Score
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