3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Better Home & Finance Holding Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 80.73%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
BETR's 3-Year ROIIC % is ranked better than 89.13% of 46
companies
in the Banks industry
Industry Median: 1.505
vs BETR: 80.73
Better Home & Finance Holding Co (NAS:BETR) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Better Home & Finance Holding Co 3-Year ROIIC % Related Terms
Better Home & Finance Holding Co 3-Year ROIIC % Historical Data
* 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.
Better Home & Finance Holding Co 3-Year ROIIC % Chart
For the Mortgage Finance subindustry, Better Home & Finance Holding Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
Better Home & Finance Holding Co 3-Year ROIIC % vs Banks Industry
For the Banks industry and Financial Services sector, Better Home & Finance Holding Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Better Home & Finance Holding Co's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -149.475 (Dec. 2025) - -595.376 (Dec. 2022) )
/
( 1227.268 (Dec. 2025) - 674.955 (Dec. 2022) )
=
445.901
/
552.313
=
80.73%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Better Home & Finance Holding Co (BETR) has a 3-Year ROIIC % of 80.73 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Better Home & Finance Holding Co and its competitors. This is 95% above median its historical median of 41.50. Over the past decade, Better Home & Finance Holding Co's 3-Year ROIIC % has ranged from 2.26 to 80.73. According to the industry distribution chart, Better Home & Finance Holding Co ranks #5 out of 46 companies in the Banks industry, placing it in the top 10.9%.
Is Better Home & Finance Holding Co's 3-Year ROIIC % too high?
Better Home & Finance Holding Co's current 3-Year ROIIC % of 80.73 is 95% above median its 10-year median of 41.50. Over the past 10 years, this metric has ranged from a low of 2.26 to a high of 80.73. The Banks industry median 3-Year ROIIC % is 1.51. Better Home & Finance Holding Co's value of 80.73 is 5264.1% above this industry median. Based on the distribution chart, Better Home & Finance Holding Co ranks #5 out of 46 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Better Home & Finance Holding Co has a GF Score™ of 26/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Better Home & Finance Holding Co's 3-Year ROIIC % compare to LDI and ONIT?
According to the Banks industry distribution chart, Better Home & Finance Holding Co ranks #5 out of 46 companies for 3-Year ROIIC %. This places Better Home & Finance Holding Co in the top 11% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 1.51. Better Home & Finance Holding Co's value of 80.73 is 5264.1% above this benchmark. Historically, Better Home & Finance Holding Co's own 3-Year ROIIC % has ranged from 2.26 to 80.73 over the past decade. While the company's 10-year median is 41.50 vs. the industry median of 1.51, Better Home & Finance Holding Co 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 3-Year ROIIC % for a Banks company?
The median 3-Year ROIIC % among Banks companies is 1.51, based on 46 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Better Home & Finance Holding Co's current 3-Year ROIIC % of 80.73 is 5264.1% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Better Home & Finance Holding Co and its competitors. For the Banks industry, the median 3-Year ROIIC % is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Better Home & Finance Holding Co's current 3-Year ROIIC % is 80.73, which is 95% above median its own 10-year median of 41.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Better Home & Finance Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Better Home & Finance Holding Co (BETR) is currently considered Modestly Undervalued. The stock's GF Value™ is $34.14, compared to a current price of $25.70 — trading 24.7% below its estimated fair value. The current 3-Year ROIIC % is 80.73, which is 95% above median its 10-year median of 41.50 and 5264.1% above the Banks industry median of 1.51. Better Home & Finance Holding Co's overall GF Score™ is 26/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Better Home & Finance Holding Co (BETR), the current 3-Year ROIIC % is 80.73 as of Dec. 2025. 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 Better Home & Finance Holding Co (BETR) Overvalued in 2026?
Based on GuruFocus' analysis, Better Home & Finance Holding Co stock appears to be undervalued.
The current stock price of $25.70 is trading 24.7% below its estimated GF Value™ of $34.14.
GuruFocus considers Better Home & Finance Holding Co to be Modestly Undervalued.
Key valuation signals for BETR:
3-Year ROIIC %: 80.73 (95% above median its 10-year median of 41.50)
GF Value™: $34.14 vs. price of $25.70 (24.7% below fair value)
Industry Position: 5264.1% above the Banks median (#5 of 46)
No single metric tells the full story. See the BETR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Better Home & Finance Holding Co Business Description
Better Home & Finance Holding Co is a technology-enabled homeownership company that provides mortgage, home equity, and related services through a digital platform. The company operates through two reportable segments: Home Finance, which focuses on residential mortgage origination, including purchase, refinance, and home equity products, generating revenue mainly from loan sales; and Banking, which, through its U.K. subsidiary Birmingham Bank, offers a range of financial products and services to consumers and small businesses. It generates the majority of its revenue from the Home Finance segment.
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