LPL Financial HoldingsLPLA +0.90%81 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates LPLA with a GF Score™ of 81/100 and a GF Value™ of $463.30 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 783 Capital Markets companies, LPL Financial Holdings ranks better than 99.87% 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. LPL Financial Holdings's annualized net income for the quarter that ended in Mar. 2026 was $1,426 Mil. LPL Financial Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-509 Mil. Therefore, LPL Financial Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for LPL Financial Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LPLA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
LPLA's Return-on-Tangible-Equity is ranked better than 99.87% of 783
companies
in the Capital Markets industry
Industry Median: 6.45
vs LPLA: Negative Tangible Equity
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.
LPL Financial Holdings Return-on-Tangible-Equity Related Terms
LPL Financial Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LPL Financial Holdings'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.
LPLA vs TW, CRCL, IREN: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, LPL Financial 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.
LPL Financial Holdings Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LPL Financial 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 four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
LPL Financial Holdings (LPLA) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LPL Financial Holdings and its competitors. According to the industry distribution chart, LPL Financial Holdings ranks #1 out of 783 companies in the Capital Markets industry, placing it in the top 0.099999999999994%.
Is LPL Financial Holdings' Return-on-Tangible-Equity too high?
LPL Financial Holdings' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, LPL Financial Holdings ranks #1 out of 783 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, LPL Financial Holdings has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Return-on-Tangible-Equity compare to TW and CRCL?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #1 out of 783 companies for Return-on-Tangible-Equity. This places LPL Financial Holdings in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.45. 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.45, based on 783 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. 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 LPL Financial Holdings and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $463.30, compared to a current price of $295.81 — trading 36.2% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. LPL Financial Holdings' overall GF Score™ is 81/100 with 4 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 LPL Financial Holdings (LPLA), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. 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 LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $295.81 is trading 36.2% below its estimated GF Value™ of $463.30.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
81GF Score
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