Pershing Square HoldingsLSE:PSH -0.42%47 ROE % is 8.22% as of Dec. 2025, which is 40% below its 10-year median of 13.68. 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 1,612 Asset Management companies, Pershing Square Holdings ranks better than 79.16% on this metric.
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, Pershing Square Holdings'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.
Pershing Square Holdings ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Pershing Square Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Pershing Square Holdings'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.
Pershing Square Holdings (LSE:PSH) has a ROE % of 8.22% 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 Pershing Square Holdings and its competitors. This is 40% below median its historical median of 13.68. According to the industry distribution chart, Pershing Square Holdings ranks #336 out of 1612 companies in the Asset Management industry, placing it in the top 20.8%.
Is Pershing Square Holdings' ROE % too high?
Pershing Square Holdings' current ROE % of 8.22% is 40% below median its 10-year median of 13.68. The Asset Management industry median ROE % is 6.40. Pershing Square Holdings' value of 8.22% is 28.5% above this industry median. Based on the distribution chart, Pershing Square Holdings ranks #336 out of 1612 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' ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Pershing Square Holdings ranks #336 out of 1612 companies for ROE %. This places Pershing Square Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 6.40. Pershing Square Holdings' value of 8.22% is 28.5% above this benchmark. While the company's 10-year median is 13.68 vs. the industry median of 6.40, 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.40, based on 1,612 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. Pershing Square Holdings's current ROE % of 8.22% is 28.5% 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 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 Pershing Square Holdings and its competitors. For the Asset Management industry, the median ROE % is 6.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pershing Square Holdings's current ROE % is 8.22%, which is 40% below median its own 10-year median of 13.68. 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 ROE % is 8.22%, which is 40% below median its 10-year median of 13.68 and 28.5% above the Asset Management industry median of 6.40. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Pershing Square Holdings (LSE:PSH), the current ROE % is 8.22% 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:
ROE %: 8.22% (40% below median its 10-year median of 13.68)
GF Value™: £42.69 vs. price of £37.66 (11.8% below fair value)
Industry Position: 28.5% above the Asset Management median (#336 of 1612)
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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