Power of CanadaTSX:POW -1.04%61 ROE % is 13.75% as of Mar. 2026, which is 35% above its 10-year median of 10.22. GuruFocus rates TSX:POW with a GF Score™ of 61/100 and a GF Value™ of C$61.64 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 502 Insurance companies, Power of Canada ranks worse than 51.59% on this metric.
The historical rank and industry rank for Power of Canada's ROE % or its related term are showing as below:
TSX:POW'
s ROE % Range Over the Past 10 Years
Min: 7.92 Med: 10.22 Max: 13.41
Current: 11.36
During the past 13 years, Power of Canada's highest ROE % was 13.41%. The lowest was 7.92%. And the median was 10.22%.
TSX:POW's ROE % is ranked worse than 51.59% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs TSX:POW: 11.36
Power of Canada (TSX:POW) 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.
Power of Canada ROE % Related Terms
Power of Canada ROE % Historical Data
* Premium members only.
The historical data trend for Power of Canada'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 Insurance - Life subindustry, Power of Canada'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.
Power of Canada ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Power of Canada's ROE % distribution charts can be found below:
* The bar in red indicates where Power of Canada'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.
Power of Canada (TSX:POW) has a ROE % of 13.75% 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 Power of Canada and its competitors. This is 35% above median its historical median of 10.22. Over the past decade, Power of Canada's ROE % has ranged from 7.92 to 13.41. According to the industry distribution chart, Power of Canada ranks #259 out of 502 companies in the Insurance industry, placing it in the top 51.6%.
Is Power of Canada's ROE % too high?
Power of Canada's current ROE % of 13.75% is 35% above median its 10-year median of 10.22. Over the past 10 years, this metric has ranged from a low of 7.92 to a high of 13.41. The Insurance industry median ROE % is 11.73. Power of Canada's value of 13.75% is 17.2% above this industry median. Based on the distribution chart, Power of Canada ranks #259 out of 502 companies in the Insurance industry, which is below the industry midpoint. Overall, Power of Canada has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power of Canada's ROE % compare to AFL and MET?
According to the Insurance industry distribution chart, Power of Canada ranks #259 out of 502 companies for ROE %. This places Power of Canada in the lower half of its industry. The industry median ROE % is 11.73. Power of Canada's value of 13.75% is 17.2% above this benchmark. Historically, Power of Canada's own ROE % has ranged from 7.92 to 13.41 over the past decade. While the company's 10-year median is 10.22 vs. the industry median of 11.73, Power of Canada 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 an Insurance company?
The median ROE % among Insurance companies is 11.73, based on 502 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. Power of Canada's current ROE % of 13.75% is 17.2% 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 Power of Canada and its competitors. For the Insurance industry, the median ROE % is 11.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power of Canada's current ROE % is 13.75%, which is 35% above median its own 10-year median of 10.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power of Canada stock overvalued right now?
Based on GuruFocus' analysis, Power of Canada (TSX:POW) is currently considered Significantly Overvalued. The stock's GF Value™ is C$61.64, compared to a current price of C$86.71 — trading 40.7% above its estimated fair value. The current ROE % is 13.75%, which is 35% above median its 10-year median of 10.22 and 17.2% above the Insurance industry median of 11.73. Power of Canada's overall GF Score™ is 61/100 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 Power of Canada (TSX:POW), the current ROE % is 13.75% 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 Power of Canada (TSX:POW) Overvalued in 2026?
Based on GuruFocus' analysis, Power of Canada stock appears to be overvalued.
The current stock price of C$86.71 is trading 40.7% above its estimated GF Value™ of C$61.64.
GuruFocus considers Power of Canada to be Significantly Overvalued.
Key valuation signals for TSX:POW:
ROE %: 13.75% (35% above median its 10-year median of 10.22)
GF Value™: C$61.64 vs. price of C$86.71 (40.7% above fair value)
Industry Position: 17.2% above the Insurance median (#259 of 502)
No single metric tells the full story. See the TSX:POW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Corp. of Canada is a holding company with controlling interests in Great-West Lifeco (one of the big three Canadian life insurers), IGM Financial (Canada's largest nonbank asset manager), and other alternative asset management platforms (Sagard and Power Sustainable). The company also has minority interests in Groupe Bruxelles Lambert, a holding company with interests in European firms.
61GF Score
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