Liberty All Star Equity FundUSA +1.54%51 Return-on-Tangible-Equity is 4.82% as of Dec. 2025, which is 70% below its 10-year median of 15.85. GuruFocus rates USA with a GF Score™ of 51/100 and a GF Value™ of $3.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,590 Asset Management companies, Liberty All Star Equity Fund ranks better than 54.72% 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. Liberty All Star Equity Fund's annualized net income for the quarter that ended in Dec. 2025 was $99.6 Mil. Liberty All Star Equity Fund's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $2,067.1 Mil. Therefore, Liberty All Star Equity Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 4.82%.
The historical rank and industry rank for Liberty All Star Equity Fund's Return-on-Tangible-Equity or its related term are showing as below:
USA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.59 Med: 15.85 Max: 26.05
Current: 8.2
During the past 9 years, Liberty All Star Equity Fund's highest Return-on-Tangible-Equity was 26.05%. The lowest was -22.59%. And the median was 15.85%.
USA's Return-on-Tangible-Equity is ranked better than 54.72% of 1590
companies
in the Asset Management industry
Industry Median: 7.12
vs USA: 8.20
Liberty All Star Equity Fund (NYSE:USA) 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.
Liberty All Star Equity Fund Return-on-Tangible-Equity Related Terms
Liberty All Star Equity Fund 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.
Liberty All Star Equity Fund Return-on-Tangible-Equity Chart
USA vs PAX, GAB, ETG: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Liberty All Star Equity Fund'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.
Liberty All Star Equity Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Liberty All Star Equity Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Liberty All Star Equity Fund'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.82% mean?
Liberty All Star Equity Fund (USA) has a Return-on-Tangible-Equity of 4.82% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Liberty All Star Equity Fund and its competitors. This is 70% below median its historical median of 15.85. According to the industry distribution chart, Liberty All Star Equity Fund ranks #720 out of 1590 companies in the Asset Management industry, placing it in the top 45.3%.
Is Liberty All Star Equity Fund's Return-on-Tangible-Equity too high?
Liberty All Star Equity Fund's current Return-on-Tangible-Equity of 4.82% is 70% below median its 10-year median of 15.85. The Asset Management industry median Return-on-Tangible-Equity is 7.12. Liberty All Star Equity Fund's value of 4.82% is 32.3% below this industry median. Based on the distribution chart, Liberty All Star Equity Fund ranks #720 out of 1590 companies in the Asset Management industry, which is above the industry midpoint. Overall, Liberty All Star Equity Fund has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Liberty All Star Equity Fund's Return-on-Tangible-Equity compare to PAX and GAB?
According to the Asset Management industry distribution chart, Liberty All Star Equity Fund ranks #720 out of 1590 companies for Return-on-Tangible-Equity. This puts Liberty All Star Equity Fund in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.12. Liberty All Star Equity Fund's value of 4.82% is 32.3% below this benchmark. While the company's 10-year median is 15.85 vs. the industry median of 7.12, Liberty All Star Equity Fund has consistently been below 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 7.12, based on 1,590 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. Liberty All Star Equity Fund's current Return-on-Tangible-Equity of 4.82% is 32.3% below 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 Liberty All Star Equity Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liberty All Star Equity Fund's current Return-on-Tangible-Equity is 4.82%, which is 70% below median its own 10-year median of 15.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liberty All Star Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Liberty All Star Equity Fund (USA) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.62, compared to a current price of $5.94 — trading 64.1% above its estimated fair value. The current Return-on-Tangible-Equity is 4.82%, which is 70% below median its 10-year median of 15.85 and 32.3% below the Asset Management industry median of 7.12. Liberty All Star Equity Fund's overall GF Score™ is 51/100 with 6 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 Liberty All Star Equity Fund (USA), the current Return-on-Tangible-Equity is 4.82% as of Dec. 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.
Is Liberty All Star Equity Fund (USA) Overvalued in 2026?
Based on GuruFocus' analysis, Liberty All Star Equity Fund stock appears to be overvalued.
The current stock price of $5.94 is trading 64.1% above its estimated GF Value™ of $3.62.
GuruFocus considers Liberty All Star Equity Fund to be Significantly Overvalued.
Key valuation signals for USA:
Return-on-Tangible-Equity: 4.82% (70% below median its 10-year median of 15.85)
GF Value™: $3.62 vs. price of $5.94 (64.1% above fair value)
Industry Position: 32.3% below the Asset Management median (#720 of 1590)
No single metric tells the full story. See the USA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liberty All Star Equity Fund is a diversified, closed-end management investment company. Its objective is to provide a high level of current income and long-term capital appreciation through investing principally in a diversified portfolio of equity securities. The fund invests in various sectors, including financials, information technology, healthcare, consumer discretionary, consumer staples, industrials, energy, materials, real estate, utilities, telecommunication, and other services.
51GF Score
Get the complete analysis for USA
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