Morgan StanleyMIL:1MS 44 ROE % is 19.84% as of Mar. 2026, which is 78% above its 10-year median of 11.14. GuruFocus rates MIL:1MS with a GF Score™ of 44/100 and a GF Value™ of €131.58 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 791 Capital Markets companies, Morgan Stanley ranks better than 76.49% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Morgan Stanley's annualized net income for the quarter that ended in Mar. 2026 was €19,262 Mil. Morgan Stanley's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €97,096 Mil. Therefore, Morgan Stanley's annualized ROE % for the quarter that ended in Mar. 2026 was 19.84%.
The historical rank and industry rank for Morgan Stanley's ROE % or its related term are showing as below:
MIL:1MS'
s ROE % Range Over the Past 10 Years
Min: 7.91 Med: 11.14 Max: 16.44
Current: 16.44
During the past 13 years, Morgan Stanley's highest ROE % was 16.44%. The lowest was 7.91%. And the median was 11.14%.
MIL:1MS's ROE % is ranked better than 76.49% of 791
companies
in the Capital Markets industry
Industry Median: 6
vs MIL:1MS: 16.44
Morgan Stanley (MIL:1MS) 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.
Morgan Stanley ROE % Related Terms
Morgan Stanley ROE % Historical Data
* Premium members only.
The historical data trend for Morgan Stanley'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, Morgan Stanley'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.
Morgan Stanley ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Morgan Stanley's ROE % distribution charts can be found below:
* The bar in red indicates where Morgan Stanley'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.
Morgan Stanley (MIL:1MS) has a ROE % of 19.84% 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 Morgan Stanley and its competitors. This is 78% above median its historical median of 11.14. Over the past decade, Morgan Stanley's ROE % has ranged from 7.91 to 16.44. According to the industry distribution chart, Morgan Stanley ranks #186 out of 791 companies in the Capital Markets industry, placing it in the top 23.5%.
Is Morgan Stanley's ROE % too high?
Morgan Stanley's current ROE % of 19.84% is 78% above median its 10-year median of 11.14. Over the past 10 years, this metric has ranged from a low of 7.91 to a high of 16.44. The Capital Markets industry median ROE % is 6.00. Morgan Stanley's value of 19.84% is 230.7% above this industry median. Based on the distribution chart, Morgan Stanley ranks #186 out of 791 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Morgan Stanley has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Stanley's ROE % compare to GS and SCHW?
According to the Capital Markets industry distribution chart, Morgan Stanley ranks #186 out of 791 companies for ROE %. This places Morgan Stanley in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 6.00. Morgan Stanley's value of 19.84% is 230.7% above this benchmark. Historically, Morgan Stanley's own ROE % has ranged from 7.91 to 16.44 over the past decade. While the company's 10-year median is 11.14 vs. the industry median of 6.00, Morgan Stanley 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. Morgan Stanley's current ROE % of 19.84% is 230.7% 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 Morgan Stanley 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. Morgan Stanley's current ROE % is 19.84%, which is 78% above median its own 10-year median of 11.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Stanley stock overvalued right now?
Based on GuruFocus' analysis, Morgan Stanley (MIL:1MS) is currently considered Significantly Overvalued. The stock's GF Value™ is €131.58, compared to a current price of €198.35 — trading 50.7% above its estimated fair value. The current ROE % is 19.84%, which is 78% above median its 10-year median of 11.14 and 230.7% above the Capital Markets industry median of 6.00. Morgan Stanley's overall GF Score™ is 44/100 with 8 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 Morgan Stanley (MIL:1MS), the current ROE % is 19.84% 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 Morgan Stanley (MIL:1MS) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Stanley stock appears to be overvalued.
The current stock price of €198.35 is trading 50.7% above its estimated GF Value™ of €131.58.
GuruFocus considers Morgan Stanley to be Significantly Overvalued.
Key valuation signals for MIL:1MS:
ROE %: 19.84% (78% above median its 10-year median of 11.14)
GF Value™: €131.58 vs. price of €198.35 (50.7% above fair value)
Industry Position: 230.7% above the Capital Markets median (#186 of 791)
No single metric tells the full story. See the MIL:1MS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Stanley is a massive global financial services firm, with offices in 42 countries and more than 82,000 employees as of year-end 2025. The firm cut its teeth in investment banking and institutional trading, where it maintains a strong presence today, but generates the lion share of its income from wealth and asset management franchises, where it boasted $9.3 trillion in client assets at the end of 2025. After reincorporation as a bank holding company in the wake of the global financial crisis, Morgan Stanley also boasts a top 10 banking franchise by deposits, with more than $400 billion in customer deposits, predominately attributable to cash sweeps from its wealth management and brokerage businesses.
44GF Score
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