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Nippon Active Value FundLSE:NAVF +0.43%73 ROE % is 17.88% as of Dec. 2025, which is 18% above its 10-year median of 15.13. GuruFocus rates LSE:NAVF with a GF Score™ of 73/100 and a GF Value™ of £2.50 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,611 Asset Management companies, Nippon Active Value Fund ranks better than 75.36% on this metric.
Nippon Active Value Fund (LSE:NAVF) 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.
* 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, Nippon Active Value Fund'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.
Nippon Active Value Fund ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Nippon Active Value Fund's ROE % distribution charts can be found below:
* The bar in red indicates where Nippon Active Value Fund'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.
Nippon Active Value Fund (LSE:NAVF) has a ROE % of 17.88% 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 Nippon Active Value Fund and its competitors. This is 18% above median its historical median of 15.13. Over the past decade, Nippon Active Value Fund's ROE % has ranged from 3.24 to 19.87. According to the industry distribution chart, Nippon Active Value Fund ranks #397 out of 1611 companies in the Asset Management industry, placing it in the top 24.6%.
Is Nippon Active Value Fund's ROE % too high?
Nippon Active Value Fund's current ROE % of 17.88% is 18% above median its 10-year median of 15.13. Over the past 10 years, this metric has ranged from a low of 3.24 to a high of 19.87. The Asset Management industry median ROE % is 6.86. Nippon Active Value Fund's value of 17.88% is 160.6% above this industry median. Based on the distribution chart, Nippon Active Value Fund ranks #397 out of 1611 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Active Value Fund has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Active Value Fund's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Nippon Active Value Fund ranks #397 out of 1611 companies for ROE %. This places Nippon Active Value Fund in the top 25% of its industry — outperforming the majority of peers. The industry median ROE % is 6.86. Nippon Active Value Fund's value of 17.88% is 160.6% above this benchmark. Historically, Nippon Active Value Fund's own ROE % has ranged from 3.24 to 19.87 over the past decade. While the company's 10-year median is 15.13 vs. the industry median of 6.86, Nippon Active Value Fund 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 6.86, based on 1,611 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. Nippon Active Value Fund's current ROE % of 17.88% is 160.6% 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 Nippon Active Value Fund and its competitors. For the Asset Management industry, the median ROE % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Active Value Fund's current ROE % is 17.88%, which is 18% above median its own 10-year median of 15.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Active Value Fund stock overvalued right now?
Based on GuruFocus' analysis, Nippon Active Value Fund (LSE:NAVF) is currently considered Fairly Valued. The stock's GF Value™ is £2.50, compared to a current price of £2.36 — trading 5.6% below its estimated fair value. The current ROE % is 17.88%, which is 18% above median its 10-year median of 15.13 and 160.6% above the Asset Management industry median of 6.86. Nippon Active Value Fund's overall GF Score™ is 73/100 with 4 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 Nippon Active Value Fund (LSE:NAVF), the current ROE % is 17.88% 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 Nippon Active Value Fund (LSE:NAVF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Active Value Fund stock appears to be undervalued.
The current stock price of £2.36 is trading 5.6% below its estimated GF Value™ of £2.50.
GuruFocus considers Nippon Active Value Fund to be Fairly Valued.
Key valuation signals for LSE:NAVF:
ROE %: 17.88% (18% above median its 10-year median of 15.13)
GF Value™: £2.50 vs. price of £2.36 (5.6% below fair value)
Industry Position: 160.6% above the Asset Management median (#397 of 1611)
No single metric tells the full story. See the LSE:NAVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Active Value Fund PLC is a closed-ended investment company. The investment objective of the company is to provide shareholders with attractive capital growth through the active management of a focused portfolio of quoted companies which have the majority of their operations in, or revenue derived from, Japan.
73GF Score
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