Capital One FinancialFRA:CFX -0.72%80 ROE % is 7.75% as of Mar. 2026, which is 8% below its 10-year median of 8.41. GuruFocus rates FRA:CFX with a GF Score™ of 80/100 and a GF Value™ of €138.48 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 529 Credit Services companies, Capital One Financial ranks worse than 62.19% on this metric.
The historical rank and industry rank for Capital One Financial's ROE % or its related term are showing as below:
FRA:CFX'
s ROE % Range Over the Past 10 Years
Min: 2.81 Med: 8.41 Max: 20.44
Current: 3.13
During the past 13 years, Capital One Financial's highest ROE % was 20.44%. The lowest was 2.81%. And the median was 8.41%.
FRA:CFX's ROE % is ranked worse than 62.19% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs FRA:CFX: 3.13
Capital One Financial (FRA:CFX) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Credit Services subindustry, Capital One Financial's ROE %, along with its competitors' market caps and ROE % 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.
Capital One Financial ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Capital One Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Capital One Financial's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Capital One Financial (FRA:CFX) has a ROE % of 7.75% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Capital One Financial and its competitors. This is near median its historical median of 8.41. Over the past decade, Capital One Financial's ROE % has ranged from 2.81 to 20.44. According to the industry distribution chart, Capital One Financial ranks #329 out of 529 companies in the Credit Services industry, placing it in the top 62.2%.
Is Capital One Financial's ROE % too high?
Capital One Financial's current ROE % of 7.75% is near median its 10-year median of 8.41. Over the past 10 years, this metric has ranged from a low of 2.81 to a high of 20.44. The Credit Services industry median ROE % is 6.61. Capital One Financial's value of 7.75% is 17.2% above this industry median. Based on the distribution chart, Capital One Financial ranks #329 out of 529 companies in the Credit Services industry, which is below the industry midpoint. Overall, Capital One Financial has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital One Financial's ROE % compare to PYPL and AFRM?
According to the Credit Services industry distribution chart, Capital One Financial ranks #329 out of 529 companies for ROE %. This places Capital One Financial in the lower half of its industry. The industry median ROE % is 6.61. Capital One Financial's value of 7.75% is 17.2% above this benchmark. Historically, Capital One Financial's own ROE % has ranged from 2.81 to 20.44 over the past decade. While the company's 10-year median is 8.41 vs. the industry median of 6.61, Capital One Financial 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 ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capital One Financial's current ROE % of 7.75% is 17.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Capital One Financial and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital One Financial's current ROE % is 7.75%, which is near median its own 10-year median of 8.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital One Financial stock overvalued right now?
Based on GuruFocus' analysis, Capital One Financial (FRA:CFX) is currently considered Modestly Overvalued. The stock's GF Value™ is €138.48, compared to a current price of €171.70 — trading 24% above its estimated fair value. The current ROE % is 7.75%, which is near median its 10-year median of 8.41 and 17.2% above the Credit Services industry median of 6.61. Capital One Financial's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Capital One Financial (FRA:CFX), the current ROE % is 7.75% 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 Capital One Financial (FRA:CFX) Overvalued in 2026?
Based on GuruFocus' analysis, Capital One Financial stock appears to be overvalued.
The current stock price of €171.70 is trading 24% above its estimated GF Value™ of €138.48.
GuruFocus considers Capital One Financial to be Modestly Overvalued.
Key valuation signals for FRA:CFX:
ROE %: 7.75% (near median its 10-year median of 8.41)
GF Value™: €138.48 vs. price of €171.70 (24% above fair value)
Industry Position: 17.2% above the Credit Services median (#329 of 529)
No single metric tells the full story. See the FRA:CFX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital One Financial is a diversified financial-services holding company headquartered in McLean, Virginia. Originally a spinoff of Signet Financial's credit card division in 1994, the company is now primarily involved in credit card lending, auto loans, and commercial lending. Following the acquisition of Discover in 2025, the firm also has a modest personal loan business, though credit card lending provides the majority of the bank's revenue.
80GF Score
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