Life Time Group HoldingsLTH -0.36%79 Return-on-Tangible-Equity is 20.06% as of Mar. 2026, which is 133% above its 10-year median of 8.61. GuruFocus rates LTH with a GF Scoreâ„¢ of 79/100 and a GF Valueâ„¢ of $27.88 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 796 Travel & Leisure companies, Life Time Group Holdings ranks better than 76.63% 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. Life Time Group Holdings's annualized net income for the quarter that ended in Mar. 2026 was $352 Mil. Life Time Group Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,757 Mil. Therefore, Life Time Group Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.06%.
The historical rank and industry rank for Life Time Group Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LTH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -166.53 Med: 8.61 Max: 25.65
Current: 24.49
During the past 8 years, Life Time Group Holdings's highest Return-on-Tangible-Equity was 25.65%. The lowest was -166.53%. And the median was 8.61%.
LTH's Return-on-Tangible-Equity is ranked better than 76.63% of 796
companies
in the Travel & Leisure industry
Industry Median: 7.57
vs LTH: 24.49
Life Time Group Holdings (NYSE:LTH) 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.
Life Time Group Holdings Return-on-Tangible-Equity Related Terms
Life Time Group Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Life Time Group 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.
Life Time Group Holdings Return-on-Tangible-Equity Chart
LTH vs GOLF, HAS, PLNT: Return-on-Tangible-Equity Comparison
For the Leisure subindustry, Life Time Group 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.
Life Time Group Holdings Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Life Time Group 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 20.06% mean?
Life Time Group Holdings (LTH) has a Return-on-Tangible-Equity of 20.06% 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 Life Time Group Holdings and its competitors. This is 133% above median its historical median of 8.61. According to the industry distribution chart, Life Time Group Holdings ranks #186 out of 796 companies in the Travel & Leisure industry, placing it in the top 23.4%.
Is Life Time Group Holdings' Return-on-Tangible-Equity too high?
Life Time Group Holdings' current Return-on-Tangible-Equity of 20.06% is 133% above median its 10-year median of 8.61. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.57. Life Time Group Holdings' value of 20.06% is 165% above this industry median. Based on the distribution chart, Life Time Group Holdings ranks #186 out of 796 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Life Time Group Holdings has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Life Time Group Holdings' Return-on-Tangible-Equity compare to GOLF and HAS?
According to the Travel & Leisure industry distribution chart, Life Time Group Holdings ranks #186 out of 796 companies for Return-on-Tangible-Equity. This places Life Time Group Holdings in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.57. Life Time Group Holdings' value of 20.06% is 165% above this benchmark. While the company's 10-year median is 8.61 vs. the industry median of 7.57, Life Time Group Holdings 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 a Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.57, based on 796 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. Life Time Group Holdings's current Return-on-Tangible-Equity of 20.06% is 165% 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 Life Time Group Holdings and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Time Group Holdings's current Return-on-Tangible-Equity is 20.06%, which is 133% above median its own 10-year median of 8.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Time Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Life Time Group Holdings (LTH) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.88, compared to a current price of $41.15 — trading 47.6% above its estimated fair value. The current Return-on-Tangible-Equity is 20.06%, which is 133% above median its 10-year median of 8.61 and 165% above the Travel & Leisure industry median of 7.57. Life Time Group Holdings' overall GF Score™ is 79/100 with 7 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 Life Time Group Holdings (LTH), the current Return-on-Tangible-Equity is 20.06% 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 Life Time Group Holdings (LTH) Overvalued in 2026?
Based on GuruFocus' analysis, Life Time Group Holdings stock appears to be overvalued.
The current stock price of $41.15 is trading 47.6% above its estimated GF Value™ of $27.88.
GuruFocus considers Life Time Group Holdings to be Significantly Overvalued.
Key valuation signals for LTH:
Return-on-Tangible-Equity: 20.06% (133% above median its 10-year median of 8.61)
GF Value™: $27.88 vs. price of $41.15 (47.6% above fair value)
Industry Position: 165% above the Travel & Leisure median (#186 of 796)
No single metric tells the full story. See the LTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Time Group Holdings Inc is a lifestyle and leisure brand offering health, fitness, and wellness experiences to a community. It is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.
79GF Score
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