Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Fairfax Financial Holdings's 3-Year RORE % for the quarter that ended in Mar. 2026 was 9.81%.
The industry rank for Fairfax Financial Holdings's 3-Year RORE % or its related term are showing as below:
FRFHF's 3-Year RORE % is ranked worse than 51.91% of 472
companies
in the Insurance industry
Industry Median: 12.05
vs FRFHF: 9.81
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Fairfax Financial Holdings 3-Year RORE % Related Terms
Fairfax Financial Holdings 3-Year RORE % 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.
For the Insurance - Property & Casualty subindustry, Fairfax Financial Holdings's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Fairfax Financial Holdings 3-Year RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Fairfax Financial Holdings's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Fairfax Financial Holdings (FRFHF) has a 3-Year RORE % of 9.81 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Fairfax Financial Holdings and its competitors. According to the industry distribution chart, Fairfax Financial Holdings ranks #245 out of 472 companies in the Insurance industry, placing it in the top 51.9%.
Is Fairfax Financial Holdings' 3-Year RORE % too high?
Fairfax Financial Holdings' current 3-Year RORE % is 9.81. The Insurance industry median 3-Year RORE % is 12.05. Fairfax Financial Holdings' value of 9.81 is 18.6% below this industry median. Based on the distribution chart, Fairfax Financial Holdings ranks #245 out of 472 companies in the Insurance industry, which is below the industry midpoint. Overall, Fairfax Financial Holdings has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fairfax Financial Holdings' 3-Year RORE % compare to CB and PGR?
According to the Insurance industry distribution chart, Fairfax Financial Holdings ranks #245 out of 472 companies for 3-Year RORE %. This places Fairfax Financial Holdings in the lower half of its industry. The industry median 3-Year RORE % is 12.05. Fairfax Financial Holdings' value of 9.81 is 18.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Insurance company?
The median 3-Year RORE % among Insurance companies is 12.05, based on 472 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fairfax Financial Holdings's current 3-Year RORE % of 9.81 is 18.6% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Fairfax Financial Holdings and its competitors. For the Insurance industry, the median 3-Year RORE % is 12.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairfax Financial Holdings's current 3-Year RORE % is 9.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairfax Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Fairfax Financial Holdings (FRFHF) is currently considered Fairly Valued. The stock's GF Value™ is $1,555.95, compared to a current price of $1,665.99 — trading 7.1% above its estimated fair value. The current 3-Year RORE % is 9.81 and 18.6% below the Insurance industry median of 12.05. Fairfax Financial Holdings' overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Fairfax Financial Holdings (FRFHF), the current 3-Year RORE % is 9.81 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 Fairfax Financial Holdings (FRFHF) Overvalued in 2026?
Based on GuruFocus' analysis, Fairfax Financial Holdings stock appears to be overvalued.
The current stock price of $1,665.99 is trading 7.1% above its estimated GF Value™ of $1,555.95.
GuruFocus considers Fairfax Financial Holdings to be Fairly Valued.
Key valuation signals for FRFHF:
3-Year RORE %: 9.81
GF Value™: $1,555.95 vs. price of $1,665.99 (7.1% above fair value)
Industry Position: 18.6% below the Insurance median (#245 of 472)
No single metric tells the full story. See the FRFHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fairfax Financial Holdings provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chair and CEO, since its formation in 1985.
78GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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