Diamond Hill Investment GroupDHIL 53 Return-on-Tangible-Equity is 20.77% as of Dec. 2025, which is 25% below its 10-year median of 27.54. GuruFocus rates DHIL with a GF Score™ of 53/100 and a GF Value™ of $170.76. The stock has 8 warning signs investors should review. Among 1,587 Asset Management companies, Diamond Hill Investment Group ranks better than 86.07% 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. Diamond Hill Investment Group's annualized net income for the quarter that ended in Dec. 2025 was $37.1 Mil. Diamond Hill Investment Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $178.7 Mil. Therefore, Diamond Hill Investment Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 20.77%.
The historical rank and industry rank for Diamond Hill Investment Group's Return-on-Tangible-Equity or its related term are showing as below:
DHIL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 20.51 Med: 27.54 Max: 40.27
Current: 28.36
During the past 13 years, Diamond Hill Investment Group's highest Return-on-Tangible-Equity was 40.27%. The lowest was 20.51%. And the median was 27.54%.
DHIL's Return-on-Tangible-Equity is ranked better than 86.07% of 1587
companies
in the Asset Management industry
Industry Median: 7.18
vs DHIL: 28.36
Diamond Hill Investment Group (NAS:DHIL) 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.
Diamond Hill Investment Group Return-on-Tangible-Equity Related Terms
Diamond Hill Investment 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.
Diamond Hill Investment Group Return-on-Tangible-Equity Chart
DHIL vs IGD, HPS, ETO: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Diamond Hill Investment 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.
Diamond Hill Investment Group Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Diamond Hill Investment Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Diamond Hill Investment 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 four times the quarterly (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 20.77% mean?
Diamond Hill Investment Group (DHIL) has a Return-on-Tangible-Equity of 20.77% 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 Diamond Hill Investment Group and its competitors. This is 25% below median its historical median of 27.54. Over the past decade, Diamond Hill Investment Group's Return-on-Tangible-Equity has ranged from 20.51 to 40.27. According to the industry distribution chart, Diamond Hill Investment Group ranks #221 out of 1587 companies in the Asset Management industry, placing it in the top 13.9%.
Is Diamond Hill Investment Group's Return-on-Tangible-Equity too high?
Diamond Hill Investment Group's current Return-on-Tangible-Equity of 20.77% is 25% below median its 10-year median of 27.54. Over the past 10 years, this metric has ranged from a low of 20.51 to a high of 40.27. The Asset Management industry median Return-on-Tangible-Equity is 7.18. Diamond Hill Investment Group's value of 20.77% is 189.3% above this industry median. Based on the distribution chart, Diamond Hill Investment Group ranks #221 out of 1587 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Diamond Hill Investment Group has a GF Score™ of 53/100, reflecting its overall financial health beyond just this single metric.
How does Diamond Hill Investment Group's Return-on-Tangible-Equity compare to IGD and HPS?
According to the Asset Management industry distribution chart, Diamond Hill Investment Group ranks #221 out of 1587 companies for Return-on-Tangible-Equity. This places Diamond Hill Investment Group in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.18. Diamond Hill Investment Group's value of 20.77% is 189.3% above this benchmark. Historically, Diamond Hill Investment Group's own Return-on-Tangible-Equity has ranged from 20.51 to 40.27 over the past decade. While the company's 10-year median is 27.54 vs. the industry median of 7.18, Diamond Hill Investment Group has consistently been above 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 7.18, based on 1,587 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. Diamond Hill Investment Group's current Return-on-Tangible-Equity of 20.77% is 189.3% 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 Diamond Hill Investment Group and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamond Hill Investment Group's current Return-on-Tangible-Equity is 20.77%, which is 25% below median its own 10-year median of 27.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond Hill Investment Group stock overvalued right now?
Diamond Hill Investment Group (DHIL) has a current Return-on-Tangible-Equity of 20.77%. The stock's GF Value™ is $170.76, compared to a current price of $174.99 — trading 2.5% above its estimated fair value. The current Return-on-Tangible-Equity is 20.77%, which is 25% below median its 10-year median of 27.54 and 189.3% above the Asset Management industry median of 7.18. Diamond Hill Investment Group's overall GF Score™ is 53/100 with 8 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 Diamond Hill Investment Group (DHIL), the current Return-on-Tangible-Equity is 20.77% 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 Diamond Hill Investment Group (DHIL) Overvalued in 2026?
Based on GuruFocus' analysis, Diamond Hill Investment Group stock appears to be overvalued.
The current stock price of $174.99 is trading 2.5% above its estimated GF Value™ of $170.76.
Key valuation signals for DHIL:
Return-on-Tangible-Equity: 20.77% (25% below median its 10-year median of 27.54)
GF Value™: $170.76 vs. price of $174.99 (2.5% above fair value)
Industry Position: 189.3% above the Asset Management median (#221 of 1587)
No single metric tells the full story. See the DHIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamond Hill Investment Group Business Description
Diamond Hill Investment Group Inc derives its consolidated revenues and net income from investment advisory and fund administration services provided by its subsidiary. It is a registered investment adviser. The company is the investment adviser and administrator for the Proprietary Funds. It also provides investment advisory services to DHMF, SMAs, CITs, other pooled vehicles including sub-advised funds, and model delivery programs.
53GF Score
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