H World GroupFRA:CL4 +1.69%83 ROE % is 28.03% as of Mar. 2026, which is 44% above its 10-year median of 19.44. GuruFocus rates FRA:CL4 with a GF Score™ of 83/100 and a GF Value™ of €3.92 (Fairly Valued). The stock has 1 warning sign investors should review. Among 824 Travel & Leisure companies, H World Group ranks better than 92.84% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. H World Group's annualized net income for the quarter that ended in Mar. 2026 was €410 Mil. H World Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €1,463 Mil. Therefore, H World Group's annualized ROE % for the quarter that ended in Mar. 2026 was 28.03%.
The historical rank and industry rank for H World Group's ROE % or its related term are showing as below:
FRA:CL4'
s ROE % Range Over the Past 10 Years
Min: -24.07 Med: 19.44 Max: 42.99
Current: 42.99
During the past 13 years, H World Group's highest ROE % was 42.99%. The lowest was -24.07%. And the median was 19.44%.
FRA:CL4's ROE % is ranked better than 92.84% of 824
companies
in the Travel & Leisure industry
Industry Median: 5.485
vs FRA:CL4: 42.99
H World Group (FRA:CL4) 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.
H World Group ROE % Related Terms
H World Group ROE % Historical Data
* Premium members only.
The historical data trend for H World Group's ROE % 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.
For the Lodging subindustry, H World Group'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.
H World Group ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's ROE % distribution charts can be found below:
* The bar in red indicates where H World Group'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.
H World Group (FRA:CL4) has a ROE % of 28.03% 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 H World Group and its competitors. This is 44% above median its historical median of 19.44. According to the industry distribution chart, H World Group ranks #59 out of 824 companies in the Travel & Leisure industry, placing it in the top 7.2%.
Is H World Group's ROE % too high?
H World Group's current ROE % of 28.03% is 44% above median its 10-year median of 19.44. The Travel & Leisure industry median ROE % is 5.49. H World Group's value of 28.03% is 411% above this industry median. Based on the distribution chart, H World Group ranks #59 out of 824 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, H World Group has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H World Group's ROE % compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #59 out of 824 companies for ROE %. This places H World Group in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 5.49. H World Group's value of 28.03% is 411% above this benchmark. While the company's 10-year median is 19.44 vs. the industry median of 5.49, H World Group 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 Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.49, based on 824 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. H World Group's current ROE % of 28.03% is 411% 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 H World Group and its competitors. For the Travel & Leisure industry, the median ROE % is 5.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H World Group's current ROE % is 28.03%, which is 44% above median its own 10-year median of 19.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H World Group stock overvalued right now?
Based on GuruFocus' analysis, H World Group (FRA:CL4) is currently considered Fairly Valued. The stock's GF Value™ is €3.92, compared to a current price of €3.62 — trading 7.7% below its estimated fair value. The current ROE % is 28.03%, which is 44% above median its 10-year median of 19.44 and 411% above the Travel & Leisure industry median of 5.49. H World Group's overall GF Score™ is 83/100 with 1 warning sign 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 H World Group (FRA:CL4), the current ROE % is 28.03% 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 H World Group (FRA:CL4) Overvalued in 2026?
Based on GuruFocus' analysis, H World Group stock appears to be undervalued.
The current stock price of €3.62 is trading 7.7% below its estimated GF Value™ of €3.92.
GuruFocus considers H World Group to be Fairly Valued.
Key valuation signals for FRA:CL4:
ROE %: 28.03% (44% above median its 10-year median of 19.44)
GF Value™: €3.92 vs. price of €3.62 (7.7% below fair value)
Industry Position: 411% above the Travel & Leisure median (#59 of 824)
No single metric tells the full story. See the FRA:CL4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H World Group Ltd a foremost, fast-growing multi-brand hotel group with international operations. The principal business activities of the Company are to develop and operate leased and owned, manachised and franchised hotels mainly in the PRC or PRC Mainland. The Group has two operating segments which are legacy Huazhu and legacy DH according to the way management intends to evaluate results and allocate resources within the Group. The majority of revenue comes from legacy Huazhu. The company has presence in Greater China and also Outside Greater China.
83GF Score
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