Robinhood Markets (LIM:HOOD) ROCE %: 17.05% (As of Mar. 2026)


LIM:HOOD Robinhood Markets Inc LIM:HOOD
69 GF Score
Price $107.93
GF Value $71.81
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Robinhood Markets ROCE %?

Robinhood Markets LIM:HOOD 69 ROCE % is 17.05% as of Mar. 2026. GuruFocus rates LIM:HOOD with a GF Score™ of 69/100 and a GF Value™ of $71.81 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Robinhood Markets's annualized ROCE % for the quarter that ended in Mar. 2026 was 17.05%.

Robinhood Markets  (LIM:HOOD) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Robinhood Markets ROCE % Related Terms

Robinhood Markets ROCE % Historical Data

* Premium members only.

The historical data trend for Robinhood Markets's ROCE % 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.

Robinhood Markets ROCE % Chart

Robinhood Markets Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial -34.21 -13.32 -7.73 14.18 24.00

Robinhood Markets Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.31 21.56 30.07 28.80 17.05
LIM:HOOD
69GF Score
Robinhood Markets Inc LIM:HOOD
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Robinhood Markets ROCE % Calculation

Robinhood Markets's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=2094/( ( (26187 - 18104) + (38137 - 28771) )/ 2 )
=2094/( (8083+9366)/ 2 )
=2094/8724.5
=24.00 %

Robinhood Markets's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1644/( ( (38137 - 28771) + (45474 - 35554) )/ 2 )
=1644/( ( 9366 + 9920 )/ 2 )
=1644/9643
=17.05 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 17.05% mean?
Robinhood Markets (LIM:HOOD) has a ROCE % of 17.05% as of Mar. 2026.
Is Robinhood Markets' ROCE % too high?
Robinhood Markets' current ROCE % is 17.05%. The Capital Markets industry median ROCE % is 5.58. Robinhood Markets' value of 17.05% is 205.8% above this industry median. Overall, Robinhood Markets has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' ROCE % compare to IBKR and CRCL?
Robinhood Markets' ROCE % of 17.05% can be compared against companies in the Capital Markets industry. The industry median ROCE % is 5.58. Robinhood Markets' value of 17.05% is 205.8% 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 ROCE % for a Capital Markets company?
The median ROCE % among Capital Markets companies is 5.58, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Robinhood Markets's current ROCE % of 17.05% is 205.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Capital Markets industry, the median ROCE % is 5.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current ROCE % is 17.05%. 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 (LIM:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is $71.81, compared to a current price of $107.93 — trading 50.3% above its estimated fair value. The current ROCE % is 17.05% and 205.8% above the Capital Markets industry median of 5.58. Robinhood Markets' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Robinhood Markets (LIM:HOOD), the current ROCE % is 17.05% 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 (LIM:HOOD) Overvalued in 2026?

Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued. The current stock price of $107.93 is trading 50.3% above its estimated GF Value™ of $71.81. GuruFocus considers Robinhood Markets to be Significantly Overvalued.

Key valuation signals for LIM:HOOD:

  • ROCE %: 17.05%
  • GF Value™: $71.81 vs. price of $107.93 (50.3% above fair value)
  • GF Score™: 69/100 with 6 warning signs
  • Industry Position: 205.8% above the Capital Markets median

No single metric tells the full story. See the LIM:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Robinhood Markets Business Description

Address 85 Willow Road, Menlo Park, CA, USA, 94025
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.
69GF Score

Get the complete analysis for LIM:HOOD

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$107.93
Price
$71.81
GF Value