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. European Assets Trust's annualized net income for the quarter that ended in Jun. 2025 was £60.15 Mil. European Assets Trust's average shareholder tangible equity for the quarter that ended in Jun. 2025 was £346.71 Mil. Therefore, European Assets Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 was 17.35%.
The historical rank and industry rank for European Assets Trust's Return-on-Tangible-Equity or its related term are showing as below:
LSE:EAT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -39.87 Med: 11.84 Max: 24.07
Current: 6.94
During the past 13 years, European Assets Trust's highest Return-on-Tangible-Equity was 24.07%. The lowest was -39.87%. And the median was 11.84%.
LSE:EAT's Return-on-Tangible-Equity is not ranked
in the Asset Management industry.
Industry Median: 7.21
vs LSE:EAT: 6.94
European Assets Trust (LSE:EAT) 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.
European Assets Trust Return-on-Tangible-Equity Related Terms
European Assets Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for European Assets Trust'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.
European Assets Trust Return-on-Tangible-Equity Chart
LSE:EAT vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, European Assets Trust'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.
European Assets Trust Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, European Assets Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where European Assets Trust'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 (Jun. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.35% mean?
European Assets Trust (LSE:EAT) has a Return-on-Tangible-Equity of 17.35% as of Jun. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on European Assets Trust and its competitors. This is 47% above median its historical median of 11.84.
Is European Assets Trust's Return-on-Tangible-Equity too high?
European Assets Trust's current Return-on-Tangible-Equity of 17.35% is 47% above median its 10-year median of 11.84. The Asset Management industry median Return-on-Tangible-Equity is 7.21. European Assets Trust's value of 17.35% is 140.6% above this industry median. Overall, European Assets Trust has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does European Assets Trust's Return-on-Tangible-Equity compare to BLK and BX?
European Assets Trust's Return-on-Tangible-Equity of 17.35% can be compared against companies in the Asset Management industry. The industry median Return-on-Tangible-Equity is 7.21. European Assets Trust's value of 17.35% is 140.6% above this benchmark. While the company's 10-year median is 11.84 vs. the industry median of 7.21, European Assets Trust 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 7.21, based on 1,591 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. European Assets Trust's current Return-on-Tangible-Equity of 17.35% is 140.6% 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 European Assets Trust and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. European Assets Trust's current Return-on-Tangible-Equity is 17.35%, which is 47% above median its own 10-year median of 11.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is European Assets Trust stock overvalued right now?
European Assets Trust (LSE:EAT) has a current Return-on-Tangible-Equity of 17.35%. The current Return-on-Tangible-Equity is 17.35%, which is 47% above median its 10-year median of 11.84 and 140.6% above the Asset Management industry median of 7.21. European Assets Trust's overall GF Score™ is 4/100 with 9 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 European Assets Trust (LSE:EAT), the current Return-on-Tangible-Equity is 17.35% as of Jun. 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.
European Assets Trust PLC is a UK-based closed-end investment company. The company's principal objective is to achieve long-term growth of capital through investment in quoted small and medium-sized companies in Europe, excluding the United Kingdom. A high distribution policy has been adopted with dividends paid out of current year revenue profits and the Distributable Reserve. It maintains a diversified portfolio of investments across all sectors including financials, industrials, consumer goods, consumer services, healthcare, technology, basic materials, and others.
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