Pershing Square HoldingsLSE:PSH -0.42%47 ROA % is 6.43% as of Dec. 2025, which is 42% below its 10-year median of 11.03. GuruFocus rates LSE:PSH with a GF Score™ of 47/100 and a GF Value™ of £42.69 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,635 Asset Management companies, Pershing Square Holdings ranks better than 80.86% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Pershing Square Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was £908 Mil.
Pershing Square Holdings's average Total Assets over the quarter that ended in Dec. 2025 was £14,123 Mil. Therefore, Pershing Square Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 6.43%.
The historical rank and industry rank for Pershing Square Holdings's ROA % or its related term are showing as below:
LSE:PSH'
s ROA % Range Over the Past 10 Years
Min: -10.29 Med: 11.03 Max: 36.17
Current: 14.11
During the past 12 years, Pershing Square Holdings's highest ROA % was 36.17%. The lowest was -10.29%. And the median was 11.03%.
LSE:PSH's ROA % is ranked better than 80.86% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs LSE:PSH: 14.11
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Asset Management subindustry, Pershing Square Holdings's ROA %, along with its competitors' market caps and ROA % 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.
Pershing Square Holdings ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Pershing Square Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Pershing Square Holdings's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Pershing Square Holdings (LSE:PSH) has a ROA % of 6.43% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Pershing Square Holdings and its competitors. This is 42% below median its historical median of 11.03. According to the industry distribution chart, Pershing Square Holdings ranks #313 out of 1635 companies in the Asset Management industry, placing it in the top 19.1%.
Is Pershing Square Holdings' ROA % too high?
Pershing Square Holdings' current ROA % of 6.43% is 42% below median its 10-year median of 11.03. The Asset Management industry median ROA % is 3.97. Pershing Square Holdings' value of 6.43% is 62% above this industry median. Based on the distribution chart, Pershing Square Holdings ranks #313 out of 1635 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Pershing Square Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pershing Square Holdings' ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Pershing Square Holdings ranks #313 out of 1635 companies for ROA %. This places Pershing Square Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median ROA % is 3.97. Pershing Square Holdings' value of 6.43% is 62% above this benchmark. While the company's 10-year median is 11.03 vs. the industry median of 3.97, Pershing Square 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 ROA % for an Asset Management company?
The median ROA % among Asset Management companies is 3.97, based on 1,635 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pershing Square Holdings's current ROA % of 6.43% is 62% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Pershing Square Holdings and its competitors. For the Asset Management industry, the median ROA % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pershing Square Holdings's current ROA % is 6.43%, which is 42% below median its own 10-year median of 11.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pershing Square Holdings stock overvalued right now?
Based on GuruFocus' analysis, Pershing Square Holdings (LSE:PSH) is currently considered Modestly Undervalued. The stock's GF Value™ is £42.69, compared to a current price of £37.66 — trading 11.8% below its estimated fair value. The current ROA % is 6.43%, which is 42% below median its 10-year median of 11.03 and 62% above the Asset Management industry median of 3.97. Pershing Square Holdings' overall GF Score™ is 47/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Pershing Square Holdings (LSE:PSH), the current ROA % is 6.43% 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 Pershing Square Holdings (LSE:PSH) Overvalued in 2026?
Based on GuruFocus' analysis, Pershing Square Holdings stock appears to be undervalued.
The current stock price of £37.66 is trading 11.8% below its estimated GF Value™ of £42.69.
GuruFocus considers Pershing Square Holdings to be Modestly Undervalued.
Key valuation signals for LSE:PSH:
ROA %: 6.43% (42% below median its 10-year median of 11.03)
GF Value™: £42.69 vs. price of £37.66 (11.8% below fair value)
Industry Position: 62% above the Asset Management median (#313 of 1635)
No single metric tells the full story. See the LSE:PSH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pershing Square Holdings Ltd is a closed-ended investment scheme. The company's investment objective is to preserve capital and to seek maximum, long-term capital appreciation commensurate with reasonable risk. It seeks to achieve its investment objective through long and occasionally short positions in equity or debt securities of public U.S. and non-U.S. issuers, derivative instruments, and other financial instruments.
47GF Score
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