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LHV Group ASOTSE:LHV1T 80 Return-on-Tangible-Equity is 13.44% as of Jun. 2026, which is 32% below its 10-year median of 19.73. GuruFocus rates OTSE:LHV1T with a GF Score™ of 80/100 and a GF Value™ of €3.39 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,520 Banks companies, LHV Group AS ranks better than 66.84% 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. LHV Group AS's annualized net income for the quarter that ended in Jun. 2026 was €96.5 Mil. LHV Group AS's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €717.5 Mil. Therefore, LHV Group AS's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 13.44%.
The historical rank and industry rank for LHV Group AS's Return-on-Tangible-Equity or its related term are showing as below:
OTSE:LHV1T'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.97 Med: 19.73 Max: 30.55
Current: 13.97
During the past 13 years, LHV Group AS's highest Return-on-Tangible-Equity was 30.55%. The lowest was 13.97%. And the median was 19.73%.
OTSE:LHV1T's Return-on-Tangible-Equity is ranked better than 66.84% of 1520
companies
in the Banks industry
Industry Median: 11.44
vs OTSE:LHV1T: 13.97
LHV Group AS (OTSE:LHV1T) 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.
LHV Group AS Return-on-Tangible-Equity Related Terms
LHV Group AS Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LHV Group AS'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.
OTSE:LHV1T vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, LHV Group AS'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.
LHV Group AS Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, LHV Group AS's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LHV Group AS'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.44% mean?
LHV Group AS (OTSE:LHV1T) has a Return-on-Tangible-Equity of 13.44% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LHV Group AS and its competitors. This is 32% below median its historical median of 19.73. Over the past decade, LHV Group AS's Return-on-Tangible-Equity has ranged from 13.97 to 30.55. According to the industry distribution chart, LHV Group AS ranks #504 out of 1520 companies in the Banks industry, placing it in the top 33.2%.
Is LHV Group AS's Return-on-Tangible-Equity too high?
LHV Group AS's current Return-on-Tangible-Equity of 13.44% is 32% below median its 10-year median of 19.73. Over the past 10 years, this metric has ranged from a low of 13.97 to a high of 30.55. The Banks industry median Return-on-Tangible-Equity is 11.44. LHV Group AS's value of 13.44% is 17.5% above this industry median. Based on the distribution chart, LHV Group AS ranks #504 out of 1520 companies in the Banks industry, which is above the industry midpoint. Overall, LHV Group AS has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LHV Group AS's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, LHV Group AS ranks #504 out of 1520 companies for Return-on-Tangible-Equity. This puts LHV Group AS in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.44. LHV Group AS's value of 13.44% is 17.5% above this benchmark. Historically, LHV Group AS's own Return-on-Tangible-Equity has ranged from 13.97 to 30.55 over the past decade. While the company's 10-year median is 19.73 vs. the industry median of 11.44, LHV Group AS 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.44, based on 1,520 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. LHV Group AS's current Return-on-Tangible-Equity of 13.44% is 17.5% 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 LHV Group AS and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LHV Group AS's current Return-on-Tangible-Equity is 13.44%, which is 32% below median its own 10-year median of 19.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LHV Group AS stock overvalued right now?
Based on GuruFocus' analysis, LHV Group AS (OTSE:LHV1T) is currently considered Fairly Valued. The stock's GF Value™ is €3.39, compared to a current price of €3.34 — trading 1.6% below its estimated fair value. The current Return-on-Tangible-Equity is 13.44%, which is 32% below median its 10-year median of 19.73 and 17.5% above the Banks industry median of 11.44. LHV Group AS's overall GF Score™ is 80/100 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 LHV Group AS (OTSE:LHV1T), the current Return-on-Tangible-Equity is 13.44% as of Jun. 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 LHV Group AS (OTSE:LHV1T) Overvalued in 2026?
Based on GuruFocus' analysis, LHV Group AS stock appears to be undervalued.
The current stock price of €3.34 is trading 1.6% below its estimated GF Value™ of €3.39.
GuruFocus considers LHV Group AS to be Fairly Valued.
Key valuation signals for OTSE:LHV1T:
Return-on-Tangible-Equity: 13.44% (32% below median its 10-year median of 19.73)
GF Value™: €3.39 vs. price of €3.34 (1.6% below fair value)
Industry Position: 17.5% above the Banks median (#504 of 1520)
No single metric tells the full story. See the OTSE:LHV1T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LHV Group AS operates as a holding company. The Group provides a wide range of financial services, including banking, investment and asset management, insurance, and other financial services in Estonia and the United Kingdom. It operates through its subsidiaries: LHV Pank, LHV Bank, LHV Varahaldus, LHV Kindlustus, and Other. The LHV Pank segment, contributes the maximum share of the Group's revenue, includes retail and corporate banking services in Estonia, offering loans, payment solution, investment, and savings products. LHV Bank offers banking services to financial intermediaries and fintech companies, SME lending, and retail banking in the United Kingdom. LHV Varahaldus is engaged in pension fund and asset management. LHV Kindlustus offers a range of non-life insurance products.
80GF Score
Get the complete analysis for OTSE:LHV1T
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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