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 REIT - Hotel & Motel subindustry, Braemar Hotels & Resorts'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.
Braemar Hotels & Resorts ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Braemar Hotels & Resorts's ROE % distribution charts can be found below:
* The bar in red indicates where Braemar Hotels & Resorts'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.
Braemar Hotels & Resorts (STU:42V) has a ROE % of 49.88% 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 Braemar Hotels & Resorts and its competitors. According to the industry distribution chart, Braemar Hotels & Resorts ranks #858 out of 938 companies in the REITs industry, placing it in the top 91.5%.
Is Braemar Hotels & Resorts' ROE % too high?
Braemar Hotels & Resorts' current ROE % is 49.88%. The REITs industry median ROE % is 6.13. Braemar Hotels & Resorts' value of 49.88% is 713.7% above this industry median. Based on the distribution chart, Braemar Hotels & Resorts ranks #858 out of 938 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Braemar Hotels & Resorts has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Braemar Hotels & Resorts' ROE % compare to AHT and IHT?
According to the REITs industry distribution chart, Braemar Hotels & Resorts ranks #858 out of 938 companies for ROE %. This places Braemar Hotels & Resorts in the lower half of its industry. The industry median ROE % is 6.13. Braemar Hotels & Resorts' value of 49.88% is 713.7% 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 ROE % for a REITs company?
The median ROE % among REITs companies is 6.13, based on 938 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. Braemar Hotels & Resorts's current ROE % of 49.88% is 713.7% 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 Braemar Hotels & Resorts and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Braemar Hotels & Resorts's current ROE % is 49.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Braemar Hotels & Resorts stock overvalued right now?
Braemar Hotels & Resorts (STU:42V) has a current ROE % of 49.88%. The stock's GF Value™ is €1.82, compared to a current price of €1.63 — trading 10.4% below its estimated fair value. The current ROE % is 49.88% and 713.7% above the REITs industry median of 6.13. Braemar Hotels & Resorts' overall GF Score™ is 62/100 with 5 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 Braemar Hotels & Resorts (STU:42V), the current ROE % is 49.88% 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 Braemar Hotels & Resorts (STU:42V) Overvalued in 2026?
Based on GuruFocus' analysis, Braemar Hotels & Resorts stock appears to be undervalued.
The current stock price of €1.63 is trading 10.4% below its estimated GF Value™ of €1.82.
Key valuation signals for STU:42V:
ROE %: 49.88%
GF Value™: €1.82 vs. price of €1.63 (10.4% below fair value)
Industry Position: 713.7% above the REITs median (#858 of 938)
No single metric tells the full story. See the STU:42V stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Braemar Hotels & Resorts Inc is a real estate investment trust company that invests in high revenue per available room, or RevPAR, luxury hotels and resorts. The firm operates in various U.S. states such as California, Texas, Washington, Philadelphia, Florida, and Illinois as well as Washington, D.C. and St. Thomas, U.S. Virgin Islands. The company operates through its direct hotel investment segment of the hotel lodging industry. Its revenue streams include rooms, food and beverage, and other. The firm's hotels operate under various brands, such as Marriott, Hilton, Courtyard, and, among others.
62GF Score
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