Australian Ethical InvestmentASX:AEF -0.74%98 ROE % is 62.03% as of Dec. 2025, which is 56% above its 10-year median of 39.74. GuruFocus rates ASX:AEF with a GF Score™ of 98/100 and a GF Value™ of A$6.36 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,614 Asset Management companies, Australian Ethical Investment ranks better than 97.46% on this metric.
The historical rank and industry rank for Australian Ethical Investment's ROE % or its related term are showing as below:
ASX:AEF'
s ROE % Range Over the Past 10 Years
Min: 21.88 Med: 39.74 Max: 59.2
Current: 59.2
During the past 13 years, Australian Ethical Investment's highest ROE % was 59.20%. The lowest was 21.88%. And the median was 39.74%.
ASX:AEF's ROE % is ranked better than 97.46% of 1614
companies
in the Asset Management industry
Industry Median: 6.36
vs ASX:AEF: 59.20
Australian Ethical Investment (ASX:AEF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Australian Ethical Investment ROE % Related Terms
Australian Ethical Investment ROE % 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.
For the Asset Management subindustry, Australian Ethical Investment's ROE %, along with its competitors' market caps and ROE % 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.
Australian Ethical Investment ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's ROE % distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Australian Ethical Investment (ASX:AEF) has a ROE % of 62.03% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Australian Ethical Investment and its competitors. This is 56% above median its historical median of 39.74. Over the past decade, Australian Ethical Investment's ROE % has ranged from 21.88 to 59.20. According to the industry distribution chart, Australian Ethical Investment ranks #41 out of 1614 companies in the Asset Management industry, placing it in the top 2.5%.
Is Australian Ethical Investment's ROE % too high?
Australian Ethical Investment's current ROE % of 62.03% is 56% above median its 10-year median of 39.74. Over the past 10 years, this metric has ranged from a low of 21.88 to a high of 59.20. The Asset Management industry median ROE % is 6.36. Australian Ethical Investment's value of 62.03% is 875.3% above this industry median. Based on the distribution chart, Australian Ethical Investment ranks #41 out of 1614 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #41 out of 1614 companies for ROE %. This places Australian Ethical Investment in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 6.36. Australian Ethical Investment's value of 62.03% is 875.3% above this benchmark. Historically, Australian Ethical Investment's own ROE % has ranged from 21.88 to 59.20 over the past decade. While the company's 10-year median is 39.74 vs. the industry median of 6.36, Australian Ethical Investment 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.36, based on 1,614 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Ethical Investment's current ROE % of 62.03% is 875.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Australian Ethical Investment and its competitors. For the Asset Management industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current ROE % is 62.03%, which is 56% above median its own 10-year median of 39.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.05 — trading 36.3% below its estimated fair value. The current ROE % is 62.03%, which is 56% above median its 10-year median of 39.74 and 875.3% above the Asset Management industry median of 6.36. Australian Ethical Investment's overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Australian Ethical Investment (ASX:AEF), the current ROE % is 62.03% 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.05 is trading 36.3% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
ROE %: 62.03% (56% above median its 10-year median of 39.74)
GF Value™: A$6.36 vs. price of A$4.05 (36.3% below fair value)
Industry Position: 875.3% above the Asset Management median (#41 of 1614)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
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