Charles SchwabFRA:SWG -1.47%73 ROE % is 20.23% as of Mar. 2026, which is 51% above its 10-year median of 13.39. GuruFocus rates FRA:SWG with a GF Score™ of 73/100 and a GF Value™ of €88.99 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 791 Capital Markets companies, Charles Schwab ranks better than 79.65% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Charles Schwab's annualized net income for the quarter that ended in Mar. 2026 was €8,577 Mil. Charles Schwab's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €42,398 Mil. Therefore, Charles Schwab's annualized ROE % for the quarter that ended in Mar. 2026 was 20.23%.
The historical rank and industry rank for Charles Schwab's ROE % or its related term are showing as below:
FRA:SWG'
s ROE % Range Over the Past 10 Years
Min: 8.48 Med: 13.39 Max: 19.07
Current: 19.07
During the past 13 years, Charles Schwab's highest ROE % was 19.07%. The lowest was 8.48%. And the median was 13.39%.
FRA:SWG's ROE % is ranked better than 79.65% of 791
companies
in the Capital Markets industry
Industry Median: 6
vs FRA:SWG: 19.07
Charles Schwab (FRA:SWG) 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.
Charles Schwab ROE % Related Terms
Charles Schwab ROE % Historical Data
* Premium members only.
The historical data trend for Charles Schwab'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 Capital Markets subindustry, Charles Schwab'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.
Charles Schwab ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Charles Schwab's ROE % distribution charts can be found below:
* The bar in red indicates where Charles Schwab'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.
Charles Schwab (FRA:SWG) has a ROE % of 20.23% 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 Charles Schwab and its competitors. This is 51% above median its historical median of 13.39. Over the past decade, Charles Schwab's ROE % has ranged from 8.48 to 19.07. According to the industry distribution chart, Charles Schwab ranks #161 out of 791 companies in the Capital Markets industry, placing it in the top 20.4%.
Is Charles Schwab's ROE % too high?
Charles Schwab's current ROE % of 20.23% is 51% above median its 10-year median of 13.39. Over the past 10 years, this metric has ranged from a low of 8.48 to a high of 19.07. The Capital Markets industry median ROE % is 6.00. Charles Schwab's value of 20.23% is 237.2% above this industry median. Based on the distribution chart, Charles Schwab ranks #161 out of 791 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Charles Schwab has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Charles Schwab's ROE % compare to HOOD and IBKR?
According to the Capital Markets industry distribution chart, Charles Schwab ranks #161 out of 791 companies for ROE %. This places Charles Schwab in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 6.00. Charles Schwab's value of 20.23% is 237.2% above this benchmark. Historically, Charles Schwab's own ROE % has ranged from 8.48 to 19.07 over the past decade. While the company's 10-year median is 13.39 vs. the industry median of 6.00, Charles Schwab 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.00, based on 791 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. Charles Schwab's current ROE % of 20.23% is 237.2% 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 Charles Schwab and its competitors. For the Capital Markets industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charles Schwab's current ROE % is 20.23%, which is 51% above median its own 10-year median of 13.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charles Schwab stock overvalued right now?
Based on GuruFocus' analysis, Charles Schwab (FRA:SWG) is currently considered Modestly Undervalued. The stock's GF Value™ is €88.99, compared to a current price of €80.30 — trading 9.8% below its estimated fair value. The current ROE % is 20.23%, which is 51% above median its 10-year median of 13.39 and 237.2% above the Capital Markets industry median of 6.00. Charles Schwab's overall GF Score™ is 73/100 with 2 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 Charles Schwab (FRA:SWG), the current ROE % is 20.23% 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 Charles Schwab (FRA:SWG) Overvalued in 2026?
Based on GuruFocus' analysis, Charles Schwab stock appears to be undervalued.
The current stock price of €80.30 is trading 9.8% below its estimated GF Value™ of €88.99.
GuruFocus considers Charles Schwab to be Modestly Undervalued.
Key valuation signals for FRA:SWG:
ROE %: 20.23% (51% above median its 10-year median of 13.39)
GF Value™: €88.99 vs. price of €80.30 (9.8% below fair value)
Industry Position: 237.2% above the Capital Markets median (#161 of 791)
No single metric tells the full story. See the FRA:SWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset management segments. The firm is a dominant player in Registered Investment Advisor(RIA) custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.
73GF Score
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