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. Air Lease's annualized net income for the quarter that ended in Dec. 2025 was €618 Mil. Air Lease's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €7,171 Mil. Therefore, Air Lease's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.62%.
The historical rank and industry rank for Air Lease's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AVLA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.42 Med: 10.08 Max: 20.14
Current: 13.46
During the past 13 years, Air Lease's highest Return-on-Tangible-Equity was 20.14%. The lowest was -1.42%. And the median was 10.08%.
FRA:AVLA's Return-on-Tangible-Equity is not ranked
in the Business Services industry.
Industry Median: 10.56
vs FRA:AVLA: 13.46
Air Lease (FRA:AVLA) 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.
Air Lease Return-on-Tangible-Equity Related Terms
Air Lease Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Air Lease'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.
FRA:AVLA vs R, UHAL, GATX: Return-on-Tangible-Equity Comparison
For the Rental & Leasing Services subindustry, Air Lease'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.
Air Lease Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Air Lease's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air Lease'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 8.62% mean?
Air Lease (FRA:AVLA) has a Return-on-Tangible-Equity of 8.62% 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 Air Lease and its competitors. This is 14% below median its historical median of 10.08.
Is Air Lease's Return-on-Tangible-Equity too high?
Air Lease's current Return-on-Tangible-Equity of 8.62% is 14% below median its 10-year median of 10.08. The Business Services industry median Return-on-Tangible-Equity is 10.56. Air Lease's value of 8.62% is 18.4% below this industry median. Overall, Air Lease has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Air Lease's Return-on-Tangible-Equity compare to R and UHAL?
Air Lease's Return-on-Tangible-Equity of 8.62% can be compared against companies in the Business Services industry. The industry median Return-on-Tangible-Equity is 10.56. Air Lease's value of 8.62% is 18.4% below this benchmark. While the company's 10-year median is 10.08 vs. the industry median of 10.56, Air Lease 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.56, based on 1,009 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. Air Lease's current Return-on-Tangible-Equity of 8.62% is 18.4% 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 Air Lease and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Lease's current Return-on-Tangible-Equity is 8.62%, which is 14% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Lease stock overvalued right now?
Air Lease (FRA:AVLA) has a current Return-on-Tangible-Equity of 8.62%. The stock's GF Value™ is €45.29, compared to a current price of €55.50 — trading 22.5% above its estimated fair value. The current Return-on-Tangible-Equity is 8.62%, which is 14% below median its 10-year median of 10.08 and 18.4% below the Business Services industry median of 10.56. Air Lease's overall GF Score™ is 64/100 with 11 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 Air Lease (FRA:AVLA), the current Return-on-Tangible-Equity is 8.62% 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 Air Lease (FRA:AVLA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Lease stock appears to be overvalued.
The current stock price of €55.50 is trading 22.5% above its estimated GF Value™ of €45.29.
Key valuation signals for FRA:AVLA:
Return-on-Tangible-Equity: 8.62% (14% below median its 10-year median of 10.08)
GF Value™: €45.29 vs. price of €55.50 (22.5% above fair value)
Industry Position: 18.4% below the Business Services median
No single metric tells the full story. See the FRA:AVLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Lease Corp is an aircraft leasing company based in the United States. It is engaged in the modern, fuel-efficient new technology commercial jet aircraft directly from aircraft manufacturers and leasing those aircraft to airlines throughout the world to generate attractive returns on equity. The company also sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors, and offers fleet management services to investors and owners of aircraft portfolios for a management fee. Geographically, it derives a maximum of its revenue from the Europe and the rest from Asia Pacific, Middle East and Africa, Central America, South America, Mexico, the United States, and Canada.
64GF Score
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