Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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. M & G Highome Investment Trust's annualized net income for the quarter that ended in Nov. 2016 was £1.92 Mil. M & G Highome Investment Trust's average shareholder tangible equity for the quarter that ended in Nov. 2016 was £5.36 Mil. Therefore, M & G Highome Investment Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2016 was 35.87%.
The historical rank and industry rank for M & G Highome Investment Trust's Return-on-Tangible-Equity or its related term are showing as below:
LSE:MGHC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -21.26 Med: 8.75 Max: 1066.32
Current: 1066.32
During the past 13 years, M & G Highome Investment Trust's highest Return-on-Tangible-Equity was 1,066.32%. The lowest was -21.26%. And the median was 8.75%.
LSE:MGHC's Return-on-Tangible-Equity is not ranked
in the Asset Management industry.
Industry Median: 7.21
vs LSE:MGHC: 1066.32
M & G Highome Investment Trust (LSE:MGHC) 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.
M & G Highome Investment Trust Return-on-Tangible-Equity Related Terms
M & G Highome Investment Trust 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.
M & G Highome Investment Trust Return-on-Tangible-Equity Chart
LSE:MGHC vs BKCC, TPVG: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, M & G Highome Investment 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.
M & G Highome Investment Trust Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, M & G Highome Investment Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where M & G Highome Investment 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 (Nov. 2016) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 35.87% mean?
M & G Highome Investment Trust (LSE:MGHC) has a Return-on-Tangible-Equity of 35.87% as of Nov. 2016. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on M & G Highome Investment Trust and its competitors. This is 310% above median its historical median of 8.75.
Is M & G Highome Investment Trust's Return-on-Tangible-Equity too high?
M & G Highome Investment Trust's current Return-on-Tangible-Equity of 35.87% is 310% above median its 10-year median of 8.75. The Asset Management industry median Return-on-Tangible-Equity is 7.21. M & G Highome Investment Trust's value of 35.87% is 397.5% above this industry median.
How does M & G Highome Investment Trust's Return-on-Tangible-Equity compare to BKCC and TPVG?
M & G Highome Investment Trust's Return-on-Tangible-Equity of 35.87% can be compared against companies in the Asset Management industry. The industry median Return-on-Tangible-Equity is 7.21. M & G Highome Investment Trust's value of 35.87% is 397.5% above this benchmark. While the company's 10-year median is 8.75 vs. the industry median of 7.21, M & G Highome Investment 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. M & G Highome Investment Trust's current Return-on-Tangible-Equity of 35.87% is 397.5% 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 M & G Highome Investment 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. M & G Highome Investment Trust's current Return-on-Tangible-Equity is 35.87%, which is 310% above median its own 10-year median of 8.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M & G Highome Investment Trust stock overvalued right now?
M & G Highome Investment Trust (LSE:MGHC) has a current Return-on-Tangible-Equity of 35.87%. The current Return-on-Tangible-Equity is 35.87%, which is 310% above median its 10-year median of 8.75 and 397.5% above the Asset Management industry median of 7.21. 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 M & G Highome Investment Trust (LSE:MGHC), the current Return-on-Tangible-Equity is 35.87% as of Nov. 2016. 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.
M & G Highome Investment Trust Business Description
M & G High Income Investment Trust PLC was incorporated in United Kingdom on December 23, 1996. It is a split capital investment trust company with three classes of share: Zero Dividend Preference Shares, Income Shares and Capital Shares. The Company's investment objective is to achieve an above average and increasing income over the 20 year life of the Company and seeking to achieve capital growth.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:MGHC has been successfully added to your 
