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. Consolidated Media Holdings's annualized net income for the quarter that ended in Jun. 2012 was A$85.80 Mil. Consolidated Media Holdings's average shareholder tangible equity for the quarter that ended in Jun. 2012 was A$325.81 Mil. Therefore, Consolidated Media Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2012 was 26.33%.
The historical rank and industry rank for Consolidated Media Holdings's Return-on-Tangible-Equity or its related term are showing as below:
ASX:PB1's Return-on-Tangible-Equity is not ranked *
in the Media - Diversified industry.
Industry Median: 5.325 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Consolidated Media Holdings (ASX:PB1) 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.
Consolidated Media Holdings Return-on-Tangible-Equity Related Terms
Consolidated Media Holdings 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.
Consolidated Media Holdings Return-on-Tangible-Equity Chart
Consolidated Media Holdings Return-on-Tangible-Equity Competitor Comparison
For the Broadcasting subindustry, Consolidated Media Holdings'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.
Consolidated Media Holdings Return-on-Tangible-Equity vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Consolidated Media Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Consolidated Media Holdings'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 one times the annual (Jun. 2012) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.33% mean?
Consolidated Media Holdings (ASX:PB1) has a Return-on-Tangible-Equity of 26.33% as of Jun. 2012. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Consolidated Media Holdings and its competitors.
Is Consolidated Media Holdings' Return-on-Tangible-Equity too high?
Consolidated Media Holdings' current Return-on-Tangible-Equity is 26.33%. The Media - Diversified industry median Return-on-Tangible-Equity is 5.33. Consolidated Media Holdings' value of 26.33% is 394.5% above this industry median.
How does Consolidated Media Holdings' Return-on-Tangible-Equity compare to competitors?
Consolidated Media Holdings' Return-on-Tangible-Equity of 26.33% can be compared against companies in the Media - Diversified industry. The industry median Return-on-Tangible-Equity is 5.33. Consolidated Media Holdings' value of 26.33% is 394.5% 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 Media - Diversified company?
The median Return-on-Tangible-Equity among Media - Diversified companies is 5.33, based on 862 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. Consolidated Media Holdings's current Return-on-Tangible-Equity of 26.33% is 394.5% 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-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 Consolidated Media Holdings and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Equity is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Consolidated Media Holdings's current Return-on-Tangible-Equity is 26.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Consolidated Media Holdings stock overvalued right now?
Consolidated Media Holdings (ASX:PB1) has a current Return-on-Tangible-Equity of 26.33%. The current Return-on-Tangible-Equity is 26.33% and 394.5% above the Media - Diversified industry median of 5.33. 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 Consolidated Media Holdings (ASX:PB1), the current Return-on-Tangible-Equity is 26.33% as of Jun. 2012. 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.
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