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. Robinhood Markets's annualized net income for the quarter that ended in Mar. 2026 was MXN25,246 Mil. Robinhood Markets's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN155,885 Mil. Therefore, Robinhood Markets's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.20%.
The historical rank and industry rank for Robinhood Markets's Return-on-Tangible-Equity or its related term are showing as below:
MEX:HOOD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -103.82 Med: -8.13 Max: 23.5
Current: 23.5
During the past 7 years, Robinhood Markets's highest Return-on-Tangible-Equity was 23.50%. The lowest was -103.82%. And the median was -8.13%.
MEX:HOOD's Return-on-Tangible-Equity is ranked better than 79.44% of 783
companies
in the Capital Markets industry
Industry Median: 6.45
vs MEX:HOOD: 23.50
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.
Robinhood Markets Return-on-Tangible-Equity Related Terms
Robinhood Markets Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Robinhood Markets's Return-on-Tangible-Equity 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, LPLA, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, Robinhood Markets'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.
Robinhood Markets Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Robinhood Markets'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 16.20% mean?
Robinhood Markets (MEX:HOOD) has a Return-on-Tangible-Equity of 16.20% 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 Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #161 out of 783 companies in the Capital Markets industry, placing it in the top 20.6%.
Is Robinhood Markets' Return-on-Tangible-Equity too high?
Robinhood Markets' current Return-on-Tangible-Equity is 16.20%. The Capital Markets industry median Return-on-Tangible-Equity is 6.45. Robinhood Markets' value of 16.20% is 151.2% above this industry median. Based on the distribution chart, Robinhood Markets ranks #161 out of 783 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 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Return-on-Tangible-Equity compare to IBKR and LPLA?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #161 out of 783 companies for Return-on-Tangible-Equity. This places Robinhood Markets in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.45. Robinhood Markets' value of 16.20% is 151.2% 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 Return-on-Tangible-Equity for a Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.45, based on 783 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. Robinhood Markets's current Return-on-Tangible-Equity of 16.20% is 151.2% 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 Robinhood Markets and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current Return-on-Tangible-Equity is 16.20%. 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 MXN1,085.89, compared to a current price of MXN1,955.00 — trading 80% above its estimated fair value. The current Return-on-Tangible-Equity is 16.20% and 151.2% above the Capital Markets industry median of 6.45. Robinhood Markets' overall GF Score™ is 57/100 with 5 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 Robinhood Markets (MEX:HOOD), the current Return-on-Tangible-Equity is 16.20% 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 MXN1,955.00 is trading 80% above its estimated GF Value™ of MXN1,085.89.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for MEX:HOOD:
Return-on-Tangible-Equity: 16.20%
GF Value™: MXN1,085.89 vs. price of MXN1,955.00 (80% above fair value)
Industry Position: 151.2% above the Capital Markets median (#161 of 783)
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.
57GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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