The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Robinhood Markets Pretax Margin % Related Terms
Robinhood Markets Pretax Margin % Historical Data
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The historical data trend for Robinhood Markets's Pretax Margin % 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.
MEX:HOOD vs IBKR, CRCL, IREN: Pretax Margin % Comparison
For the Capital Markets subindustry, Robinhood Markets's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Robinhood Markets Pretax Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's Pretax Margin % 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.
Robinhood Markets (MEX:HOOD) has a Pretax Margin % of 38.52% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #192 out of 774 companies in the Capital Markets industry, placing it in the top 24.8%.
Is Robinhood Markets' Pretax Margin % too high?
Robinhood Markets' current Pretax Margin % is 38.52%. The Capital Markets industry median Pretax Margin % is 20.32. Robinhood Markets' value of 38.52% is 89.6% above this industry median. Based on the distribution chart, Robinhood Markets ranks #192 out of 774 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Robinhood Markets has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Pretax Margin % compare to IBKR and CRCL?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #192 out of 774 companies for Pretax Margin %. This places Robinhood Markets in the top 25% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 20.32. Robinhood Markets' value of 38.52% is 89.6% 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 Pretax Margin % for a Capital Markets company?
The median Pretax Margin % among Capital Markets companies is 20.32, based on 774 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Robinhood Markets's current Pretax Margin % of 38.52% is 89.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Robinhood Markets and its competitors. For the Capital Markets industry, the median Pretax Margin % is 20.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current Pretax Margin % is 38.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (MEX:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,064.67, compared to a current price of MXN1,689.54 — trading 58.7% above its estimated fair value. The current Pretax Margin % is 38.52% and 89.6% above the Capital Markets industry median of 20.32. Robinhood Markets' overall GF Score™ is 63/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Robinhood Markets (MEX:HOOD), the current Pretax Margin % is 38.52% 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 Robinhood Markets (MEX:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of MXN1,689.54 is trading 58.7% above its estimated GF Value™ of MXN1,064.67.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for MEX:HOOD:
Pretax Margin %: 38.52%
GF Value™: MXN1,064.67 vs. price of MXN1,689.54 (58.7% above fair value)
Industry Position: 89.6% above the Capital Markets median (#192 of 774)
No single metric tells the full story. See the MEX:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
63GF Score
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