Fairfax Financial HoldingsFRFHF -0.70%78 Return-on-Tangible-Equity is 15.47% as of Mar. 2026, which is 39% below its 10-year median of 25.16. GuruFocus rates FRFHF with a GF Score™ of 78/100 and a GF Value™ of $1,554.95 (Fairly Valued). The stock has 6 warning signs investors should review. Among 499 Insurance companies, Fairfax Financial Holdings ranks better than 78.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Fairfax Financial Holdings's annualized net income for the quarter that ended in Mar. 2026 was $2,783 Mil. Fairfax Financial Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $17,983 Mil. Therefore, Fairfax Financial Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.47%.
The historical rank and industry rank for Fairfax Financial Holdings's Return-on-Tangible-Equity or its related term are showing as below:
FRFHF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.74 Med: 25.16 Max: 37.29
Current: 25.75
During the past 13 years, Fairfax Financial Holdings's highest Return-on-Tangible-Equity was 37.29%. The lowest was -7.74%. And the median was 25.16%.
FRFHF's Return-on-Tangible-Equity is ranked better than 78.96% of 499
companies
in the Insurance industry
Industry Median: 13.51
vs FRFHF: 25.75
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Fairfax Financial Holdings Return-on-Tangible-Equity Related Terms
Fairfax Financial Holdings Return-on-Tangible-Equity Historical Data
* 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.
FRFHF vs CB, PGR, TRV: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Fairfax Financial Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Fairfax Financial Holdings Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fairfax Financial Holdings's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.47% mean?
Fairfax Financial Holdings (FRFHF) has a Return-on-Tangible-Equity of 15.47% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fairfax Financial Holdings and its competitors. This is 39% below median its historical median of 25.16. According to the industry distribution chart, Fairfax Financial Holdings ranks #105 out of 499 companies in the Insurance industry, placing it in the top 21%.
Is Fairfax Financial Holdings' Return-on-Tangible-Equity too high?
Fairfax Financial Holdings' current Return-on-Tangible-Equity of 15.47% is 39% below median its 10-year median of 25.16. The Insurance industry median Return-on-Tangible-Equity is 13.51. Fairfax Financial Holdings' value of 15.47% is 14.5% above this industry median. Based on the distribution chart, Fairfax Financial Holdings ranks #105 out of 499 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Fairfax Financial Holdings has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fairfax Financial Holdings' Return-on-Tangible-Equity compare to CB and PGR?
According to the Insurance industry distribution chart, Fairfax Financial Holdings ranks #105 out of 499 companies for Return-on-Tangible-Equity. This places Fairfax Financial Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.51. Fairfax Financial Holdings' value of 15.47% is 14.5% above this benchmark. While the company's 10-year median is 25.16 vs. the industry median of 13.51, Fairfax Financial 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.51, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fairfax Financial Holdings's current Return-on-Tangible-Equity of 15.47% is 14.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fairfax Financial Holdings and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairfax Financial Holdings's current Return-on-Tangible-Equity is 15.47%, which is 39% below median its own 10-year median of 25.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairfax Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Fairfax Financial Holdings (FRFHF) is currently considered Fairly Valued. The stock's GF Value™ is $1,554.95, compared to a current price of $1,688.07 — trading 8.6% above its estimated fair value. The current Return-on-Tangible-Equity is 15.47%, which is 39% below median its 10-year median of 25.16 and 14.5% above the Insurance industry median of 13.51. Fairfax Financial Holdings' overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Fairfax Financial Holdings (FRFHF), the current Return-on-Tangible-Equity is 15.47% 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 Fairfax Financial Holdings (FRFHF) Overvalued in 2026?
Based on GuruFocus' analysis, Fairfax Financial Holdings stock appears to be overvalued.
The current stock price of $1,688.07 is trading 8.6% above its estimated GF Value™ of $1,554.95.
GuruFocus considers Fairfax Financial Holdings to be Fairly Valued.
Key valuation signals for FRFHF:
Return-on-Tangible-Equity: 15.47% (39% below median its 10-year median of 25.16)
GF Value™: $1,554.95 vs. price of $1,688.07 (8.6% above fair value)
Industry Position: 14.5% above the Insurance median (#105 of 499)
No single metric tells the full story. See the FRFHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fairfax Financial Holdings provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chair and CEO, since its formation in 1985.
78GF Score
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