The historical rank and industry rank for Berkshire Hathaway's ROE % or its related term are showing as below:
XSWX:BRK'
s ROE % Range Over the Past 10 Years
Min: -4.65 Med: 12.03 Max: 21.05
Current: 10.46
During the past 13 years, Berkshire Hathaway's highest ROE % was 21.05%. The lowest was -4.65%. And the median was 12.03%.
XSWX:BRK's ROE % is ranked worse than 55.58% of 502
companies
in the Insurance industry
Industry Median: 11.73
vs XSWX:BRK: 10.46
Berkshire Hathaway (XSWX:BRK) 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.
Berkshire Hathaway ROE % Related Terms
Berkshire Hathaway ROE % Historical Data
* Premium members only.
The historical data trend for Berkshire Hathaway'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 - Diversified subindustry, Berkshire Hathaway'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.
Berkshire Hathaway ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's ROE % distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway'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.
Berkshire Hathaway (XSWX:BRK) has a ROE % of 5.56% 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 Berkshire Hathaway and its competitors. This is 54% below median its historical median of 12.03. According to the industry distribution chart, Berkshire Hathaway ranks #279 out of 502 companies in the Insurance industry, placing it in the top 55.6%.
Is Berkshire Hathaway's ROE % too high?
Berkshire Hathaway's current ROE % of 5.56% is 54% below median its 10-year median of 12.03. The Insurance industry median ROE % is 11.73. Berkshire Hathaway's value of 5.56% is 52.6% below this industry median. Based on the distribution chart, Berkshire Hathaway ranks #279 out of 502 companies in the Insurance industry, which is below the industry midpoint. Overall, Berkshire Hathaway has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's ROE % compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #279 out of 502 companies for ROE %. This places Berkshire Hathaway in the lower half of its industry. The industry median ROE % is 11.73. Berkshire Hathaway's value of 5.56% is 52.6% below this benchmark. While the company's 10-year median is 12.03 vs. the industry median of 11.73, Berkshire Hathaway has consistently been below 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. Berkshire Hathaway's current ROE % of 5.56% is 52.6% below 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 Berkshire Hathaway 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. Berkshire Hathaway's current ROE % is 5.56%, which is 54% below median its own 10-year median of 12.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Berkshire Hathaway stock overvalued right now?
Based on GuruFocus' analysis, Berkshire Hathaway (XSWX:BRK) is currently considered Fairly Valued. The stock's GF Value™ is CHF427.07, compared to a current price of CHF399.10 — trading 6.5% below its estimated fair value. The current ROE % is 5.56%, which is 54% below median its 10-year median of 12.03 and 52.6% below the Insurance industry median of 11.73. Berkshire Hathaway's overall GF Score™ is 74/100 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 Berkshire Hathaway (XSWX:BRK), the current ROE % is 5.56% 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 Berkshire Hathaway (XSWX:BRK) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of CHF399.10 is trading 6.5% below its estimated GF Value™ of CHF427.07.
GuruFocus considers Berkshire Hathaway to be Fairly Valued.
Key valuation signals for XSWX:BRK:
ROE %: 5.56% (54% below median its 10-year median of 12.03)
GF Value™: CHF427.07 vs. price of CHF399.10 (6.5% below fair value)
Industry Position: 52.6% below the Insurance median (#279 of 502)
No single metric tells the full story. See the XSWX:BRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from its operations to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis. Berkshire generated close to $371.4 billion in operating revenue in during 2025.
74GF Score
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