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First Trust Enhanced Equityome FundFFA -0.19%61 Return-on-Tangible-Equity is 27.14% as of Dec. 2025, which is 51% above its 10-year median of 18.00. GuruFocus rates FFA with a GF Score™ of 61/100 and a GF Value™ of $23.66 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,589 Asset Management companies, First Trust Enhanced Equityome Fund ranks better than 74.01% on this metric.
The historical rank and industry rank for First Trust Enhanced Equityome Fund's Return-on-Tangible-Equity or its related term are showing as below:
FFA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.04 Med: 18 Max: 27.08
Current: 18.28
During the past 9 years, First Trust Enhanced Equityome Fund's highest Return-on-Tangible-Equity was 27.08%. The lowest was -18.04%. And the median was 18.00%.
FFA's Return-on-Tangible-Equity is ranked better than 74.01% of 1589
companies
in the Asset Management industry
Industry Median: 7.5
vs FFA: 18.28
First Trust Enhanced Equityome Fund (NYSE:FFA) 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.
First Trust Enhanced Equityome Fund Return-on-Tangible-Equity Related Terms
First Trust Enhanced Equityome Fund 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.
First Trust Enhanced Equityome Fund Return-on-Tangible-Equity Chart
FFA vs NBB, ETB, KIO: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, First Trust Enhanced Equityome Fund'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.
First Trust Enhanced Equityome Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, First Trust Enhanced Equityome Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Trust Enhanced Equityome Fund'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 27.14% mean?
First Trust Enhanced Equityome Fund (FFA) has a Return-on-Tangible-Equity of 27.14% 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 First Trust Enhanced Equityome Fund and its competitors. This is 51% above median its historical median of 18.00. According to the industry distribution chart, First Trust Enhanced Equityome Fund ranks #413 out of 1589 companies in the Asset Management industry, placing it in the top 26%.
Is First Trust Enhanced Equityome Fund's Return-on-Tangible-Equity too high?
First Trust Enhanced Equityome Fund's current Return-on-Tangible-Equity of 27.14% is 51% above median its 10-year median of 18.00. The Asset Management industry median Return-on-Tangible-Equity is 7.50. First Trust Enhanced Equityome Fund's value of 27.14% is 261.9% above this industry median. Based on the distribution chart, First Trust Enhanced Equityome Fund ranks #413 out of 1589 companies in the Asset Management industry, which is above the industry midpoint. Overall, First Trust Enhanced Equityome Fund has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Trust Enhanced Equityome Fund's Return-on-Tangible-Equity compare to NBB and ETB?
According to the Asset Management industry distribution chart, First Trust Enhanced Equityome Fund ranks #413 out of 1589 companies for Return-on-Tangible-Equity. This puts First Trust Enhanced Equityome Fund in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.50. First Trust Enhanced Equityome Fund's value of 27.14% is 261.9% above this benchmark. While the company's 10-year median is 18.00 vs. the industry median of 7.50, First Trust Enhanced Equityome Fund 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 7.50, based on 1,589 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. First Trust Enhanced Equityome Fund's current Return-on-Tangible-Equity of 27.14% is 261.9% 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 First Trust Enhanced Equityome Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Trust Enhanced Equityome Fund's current Return-on-Tangible-Equity is 27.14%, which is 51% above median its own 10-year median of 18.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Trust Enhanced Equityome Fund stock overvalued right now?
Based on GuruFocus' analysis, First Trust Enhanced Equityome Fund (FFA) is currently considered Fairly Valued. The stock's GF Value™ is $23.66, compared to a current price of $23.21 — trading 1.9% below its estimated fair value. The current Return-on-Tangible-Equity is 27.14%, which is 51% above median its 10-year median of 18.00 and 261.9% above the Asset Management industry median of 7.50. First Trust Enhanced Equityome Fund's overall GF Score™ is 61/100 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 First Trust Enhanced Equityome Fund (FFA), the current Return-on-Tangible-Equity is 27.14% 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 First Trust Enhanced Equityome Fund (FFA) Overvalued in 2026?
Based on GuruFocus' analysis, First Trust Enhanced Equityome Fund stock appears to be undervalued.
The current stock price of $23.21 is trading 1.9% below its estimated GF Value™ of $23.66.
GuruFocus considers First Trust Enhanced Equityome Fund to be Fairly Valued.
Key valuation signals for FFA:
Return-on-Tangible-Equity: 27.14% (51% above median its 10-year median of 18.00)
GF Value™: $23.66 vs. price of $23.21 (1.9% below fair value)
Industry Position: 261.9% above the Asset Management median (#413 of 1589)
No single metric tells the full story. See the FFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Trust Enhanced Equity Income Fund is a diversified, closed-end management investment company. Its investment objective is to provide high level of current income and gains and, to a lesser extent, capital appreciation. The Fund pursues its investment objective by investing in a diversified portfolio of equity securities.
61GF Score
Get the complete analysis for FFA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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