Life Time Group HoldingsLTH +2.75%82 ROE % is 11.11% as of Mar. 2026, which is 546% above its 10-year median of 1.72. GuruFocus rates LTH with a GF Score™ of 82/100 and a GF Value™ of $27.87 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 824 Travel & Leisure companies, Life Time Group Holdings ranks better than 71.6% on this metric.
The historical rank and industry rank for Life Time Group Holdings's ROE % or its related term are showing as below:
LTH'
s ROE % Range Over the Past 10 Years
Min: -32.43 Med: 1.72 Max: 13.03
Current: 12.91
During the past 8 years, Life Time Group Holdings's highest ROE % was 13.03%. The lowest was -32.43%. And the median was 1.72%.
LTH's ROE % is ranked better than 71.6% of 824
companies
in the Travel & Leisure industry
Industry Median: 5.485
vs LTH: 12.91
Life Time Group Holdings (NYSE:LTH) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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 Leisure subindustry, Life Time Group 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.
Life Time Group Holdings ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Life Time Group 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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Life Time Group Holdings (LTH) has a ROE % of 11.11% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Life Time Group Holdings and its competitors. This is 546% above median its historical median of 1.72. According to the industry distribution chart, Life Time Group Holdings ranks #234 out of 824 companies in the Travel & Leisure industry, placing it in the top 28.4%.
Is Life Time Group Holdings' ROE % too high?
Life Time Group Holdings' current ROE % of 11.11% is 546% above median its 10-year median of 1.72. The Travel & Leisure industry median ROE % is 5.49. Life Time Group Holdings' value of 11.11% is 102.6% above this industry median. Based on the distribution chart, Life Time Group Holdings ranks #234 out of 824 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Life Time Group Holdings has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Life Time Group Holdings' ROE % compare to GOLF and MAT?
According to the Travel & Leisure industry distribution chart, Life Time Group Holdings ranks #234 out of 824 companies for ROE %. This puts Life Time Group Holdings in the upper half of its industry. The industry median ROE % is 5.49. Life Time Group Holdings' value of 11.11% is 102.6% above this benchmark. While the company's 10-year median is 1.72 vs. the industry median of 5.49, Life Time Group 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 a Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.49, based on 824 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. Life Time Group Holdings's current ROE % of 11.11% is 102.6% 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 Life Time Group Holdings and its competitors. For the Travel & Leisure industry, the median ROE % is 5.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Time Group Holdings's current ROE % is 11.11%, which is 546% above median its own 10-year median of 1.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Time Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Life Time Group Holdings (LTH) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.87, compared to a current price of $38.87 — trading 39.5% above its estimated fair value. The current ROE % is 11.11%, which is 546% above median its 10-year median of 1.72 and 102.6% above the Travel & Leisure industry median of 5.49. Life Time Group Holdings' overall GF Score™ is 82/100 with 7 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 Life Time Group Holdings (LTH), the current ROE % is 11.11% as of Mar. 2026. 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 Life Time Group Holdings (LTH) Overvalued in 2026?
Based on GuruFocus' analysis, Life Time Group Holdings stock appears to be overvalued.
The current stock price of $38.87 is trading 39.5% above its estimated GF Value™ of $27.87.
GuruFocus considers Life Time Group Holdings to be Significantly Overvalued.
Key valuation signals for LTH:
ROE %: 11.11% (546% above median its 10-year median of 1.72)
GF Value™: $27.87 vs. price of $38.87 (39.5% above fair value)
Industry Position: 102.6% above the Travel & Leisure median (#234 of 824)
No single metric tells the full story. See the LTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Time Group Holdings Inc is a lifestyle and leisure brand offering health, fitness, and wellness experiences to a community. It is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.
82GF Score
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