The historical rank and industry rank for Robinhood Markets's ROE % or its related term are showing as below:
TSX:HOOD'
s ROE % Range Over the Past 10 Years
Min: -101.88 Med: -7.93 Max: 22.03
Current: 22.03
During the past 7 years, Robinhood Markets's highest ROE % was 22.03%. The lowest was -101.88%. And the median was -7.93%.
TSX:HOOD's ROE % is ranked better than 84.96% of 791
companies
in the Capital Markets industry
Industry Median: 6
vs TSX:HOOD: 22.03
Robinhood Markets (TSX:HOOD) 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.
Robinhood Markets ROE % Related Terms
Robinhood Markets ROE % Historical Data
* Premium members only.
The historical data trend for Robinhood Markets'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, Robinhood Markets'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.
Robinhood Markets ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's ROE % distribution charts can be found below:
* The bar in red indicates where Robinhood Markets'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.
Robinhood Markets (TSX:HOOD) has a ROE % of 15.13% 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 Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #119 out of 791 companies in the Capital Markets industry, placing it in the top 15%.
Is Robinhood Markets' ROE % too high?
Robinhood Markets' current ROE % is 15.13%. The Capital Markets industry median ROE % is 6.00. Robinhood Markets' value of 15.13% is 152.2% above this industry median. Based on the distribution chart, Robinhood Markets ranks #119 out of 791 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Robinhood Markets has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' ROE % compare to IBKR and CRCL?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #119 out of 791 companies for ROE %. This places Robinhood Markets in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.00. Robinhood Markets' value of 15.13% is 152.2% 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 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. Robinhood Markets's current ROE % of 15.13% is 152.2% 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 Robinhood Markets 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. Robinhood Markets's current ROE % is 15.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (TSX:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is C$10.26, compared to a current price of C$15.31 — trading 49.2% above its estimated fair value. The current ROE % is 15.13% and 152.2% above the Capital Markets industry median of 6.00. Robinhood Markets' overall GF Score™ is 57/100 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 Robinhood Markets (TSX:HOOD), the current ROE % is 15.13% 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 Robinhood Markets (TSX:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of C$15.31 is trading 49.2% above its estimated GF Value™ of C$10.26.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for TSX:HOOD:
ROE %: 15.13%
GF Value™: C$10.26 vs. price of C$15.31 (49.2% above fair value)
Industry Position: 152.2% above the Capital Markets median (#119 of 791)
No single metric tells the full story. See the TSX:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
57GF Score
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