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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Houlihan Lokey's 3-Year RORE % for the quarter that ended in Mar. 2026 was 18.55%.
The industry rank for Houlihan Lokey's 3-Year RORE % or its related term are showing as below:
FRA:2HL's 3-Year RORE % is ranked better than 57.27% of 763
companies
in the Capital Markets industry
Industry Median: 14.85
vs FRA:2HL: 18.55
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Houlihan Lokey 3-Year RORE % Related Terms
Houlihan Lokey 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Houlihan Lokey's 3-Year RORE % can be seen below:
* 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.
FRA:2HL vs JEF, SF, SNEX: 3-Year RORE % Comparison
For the Capital Markets subindustry, Houlihan Lokey's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Houlihan Lokey 3-Year RORE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Houlihan Lokey's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Houlihan Lokey's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Houlihan Lokey (FRA:2HL) has a 3-Year RORE % of 18.55 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Houlihan Lokey and its competitors. According to the industry distribution chart, Houlihan Lokey ranks #326 out of 763 companies in the Capital Markets industry, placing it in the top 42.7%.
Is Houlihan Lokey's 3-Year RORE % too high?
Houlihan Lokey's current 3-Year RORE % is 18.55. The Capital Markets industry median 3-Year RORE % is 14.85. Houlihan Lokey's value of 18.55 is 24.9% above this industry median. Based on the distribution chart, Houlihan Lokey ranks #326 out of 763 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Houlihan Lokey has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Houlihan Lokey's 3-Year RORE % compare to JEF and SF?
According to the Capital Markets industry distribution chart, Houlihan Lokey ranks #326 out of 763 companies for 3-Year RORE %. This puts Houlihan Lokey in the upper half of its industry. The industry median 3-Year RORE % is 14.85. Houlihan Lokey's value of 18.55 is 24.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Capital Markets company?
The median 3-Year RORE % among Capital Markets companies is 14.85, based on 763 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Houlihan Lokey's current 3-Year RORE % of 18.55 is 24.9% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Houlihan Lokey and its competitors. For the Capital Markets industry, the median 3-Year RORE % is 14.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houlihan Lokey's current 3-Year RORE % is 18.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houlihan Lokey stock overvalued right now?
Based on GuruFocus' analysis, Houlihan Lokey (FRA:2HL) is currently considered Modestly Undervalued. The stock's GF Value™ is €164.12, compared to a current price of €122.50 — trading 25.4% below its estimated fair value. The current 3-Year RORE % is 18.55 and 24.9% above the Capital Markets industry median of 14.85. Houlihan Lokey's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Houlihan Lokey (FRA:2HL), the current 3-Year RORE % is 18.55 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 Houlihan Lokey (FRA:2HL) Overvalued in 2026?
Based on GuruFocus' analysis, Houlihan Lokey stock appears to be undervalued.
The current stock price of €122.50 is trading 25.4% below its estimated GF Value™ of €164.12.
GuruFocus considers Houlihan Lokey to be Modestly Undervalued.
Key valuation signals for FRA:2HL:
3-Year RORE %: 18.55
GF Value™: €164.12 vs. price of €122.50 (25.4% below fair value)
Industry Position: 24.9% above the Capital Markets median (#326 of 763)
No single metric tells the full story. See the FRA:2HL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. The Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
83GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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