Derwent LondonCHIX:DLNL +1.25%74 Return-on-Tangible-Equity is 3.70% as of Dec. 2025, which is 5% below its 10-year median of 3.90. GuruFocus rates CHIX:DLNL with a GF Score™ of 74/100 and a GF Value™ of £23.18 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 934 REITs companies, Derwent London ranks worse than 62.42% 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. Derwent London's annualized net income for the quarter that ended in Dec. 2025 was £133.2 Mil. Derwent London's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £3,595.6 Mil. Therefore, Derwent London's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 3.70%.
The historical rank and industry rank for Derwent London's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:DLNl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.56 Med: 3.9 Max: 7.79
Current: 4.5
During the past 13 years, Derwent London's highest Return-on-Tangible-Equity was 7.79%. The lowest was -12.56%. And the median was 3.90%.
CHIX:DLNl's Return-on-Tangible-Equity is ranked worse than 62.42% of 934
companies
in the REITs industry
Industry Median: 6.225
vs CHIX:DLNl: 4.50
Derwent London (CHIX:DLNl) 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.
Derwent London Return-on-Tangible-Equity Related Terms
Derwent London Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Derwent London'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.
CHIX:DLNL vs BXP, ARE, VNO: Return-on-Tangible-Equity Comparison
For the REIT - Office subindustry, Derwent London'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.
Derwent London Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Derwent London's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Derwent London'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 3.70% mean?
Derwent London (CHIX:DLNL) has a Return-on-Tangible-Equity of 3.70% 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 Derwent London and its competitors. This is near median its historical median of 3.90. According to the industry distribution chart, Derwent London ranks #583 out of 934 companies in the REITs industry, placing it in the top 62.4%.
Is Derwent London's Return-on-Tangible-Equity too high?
Derwent London's current Return-on-Tangible-Equity of 3.70% is near median its 10-year median of 3.90. The REITs industry median Return-on-Tangible-Equity is 6.23. Derwent London's value of 3.70% is 40.6% below this industry median. Based on the distribution chart, Derwent London ranks #583 out of 934 companies in the REITs industry, which is below the industry midpoint. Overall, Derwent London has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Derwent London's Return-on-Tangible-Equity compare to BXP and ARE?
According to the REITs industry distribution chart, Derwent London ranks #583 out of 934 companies for Return-on-Tangible-Equity. This places Derwent London in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.23. Derwent London's value of 3.70% is 40.6% below this benchmark. While the company's 10-year median is 3.90 vs. the industry median of 6.23, Derwent London 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 a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.23, based on 934 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. Derwent London's current Return-on-Tangible-Equity of 3.70% is 40.6% 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 Derwent London and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Derwent London's current Return-on-Tangible-Equity is 3.70%, which is near median its own 10-year median of 3.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Derwent London stock overvalued right now?
Based on GuruFocus' analysis, Derwent London (CHIX:DLNL) is currently considered Modestly Undervalued. The stock's GF Value™ is £23.18, compared to a current price of £20.26 — trading 12.6% below its estimated fair value. The current Return-on-Tangible-Equity is 3.70%, which is near median its 10-year median of 3.90 and 40.6% below the REITs industry median of 6.23. Derwent London's overall GF Score™ is 74/100 with 10 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 Derwent London (CHIX:DLNL), the current Return-on-Tangible-Equity is 3.70% 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 Derwent London (CHIX:DLNL) Overvalued in 2026?
Based on GuruFocus' analysis, Derwent London stock appears to be undervalued.
The current stock price of £20.26 is trading 12.6% below its estimated GF Value™ of £23.18.
GuruFocus considers Derwent London to be Modestly Undervalued.
Key valuation signals for CHIX:DLNL:
Return-on-Tangible-Equity: 3.70% (near median its 10-year median of 3.90)
GF Value™: £23.18 vs. price of £20.26 (12.6% below fair value)
Industry Position: 40.6% below the REITs median (#583 of 934)
No single metric tells the full story. See the CHIX:DLNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Derwent London PLC is London's inventive office specialist property regenerators and investors and is well known for its design-led philosophy and creative management approach to development. Its appealing designs attract a range of tenants, including those from creative industries. The group has been a Real Estate Investment Trust (REIT) principally property investors with tax-exempt property rental businesses, but remain subject to corporation tax on nonexempt income and gains The Group owns and manages an investment portfolio of approximately 5.4 million sq ft, of which 98% is located in central London, with a specific focus on the West End and the areas bordering the City of London.
74GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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