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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-22), Robinhood Markets's 1-Year Sharpe Ratio is 0.31.
Robinhood Markets (NAS:HOOD) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Robinhood Markets 1-Year Sharpe Ratio Related Terms
HOOD vs IBKR, LPLA, SCHW: 1-Year Sharpe Ratio Comparison
For the Capital Markets subindustry, Robinhood Markets's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Robinhood Markets (HOOD) has a 1-Year Sharpe Ratio of 0.31 as of Jul. 22, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Robinhood Markets and its competitors.
Is Robinhood Markets' 1-Year Sharpe Ratio too high?
Robinhood Markets' current 1-Year Sharpe Ratio is 0.31. Overall, Robinhood Markets has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' 1-Year Sharpe Ratio compare to IBKR and LPLA?
Robinhood Markets' 1-Year Sharpe Ratio of 0.31 can be compared against companies in the Capital Markets industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Capital Markets company?
A good 1-Year Sharpe Ratio depends on the Capital Markets industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Robinhood Markets and its competitors. Robinhood Markets's current 1-Year Sharpe Ratio is 0.31. 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 (HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is $62.85, compared to a current price of $104.48 — trading 66.2% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.31. Robinhood Markets' overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Robinhood Markets (HOOD), the current 1-Year Sharpe Ratio is 0.31 as of Jul. 22, 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 (HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of $104.48 is trading 66.2% above its estimated GF Value™ of $62.85.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for HOOD:
1-Year Sharpe Ratio: 0.31
GF Value™: $62.85 vs. price of $104.48 (66.2% above fair value)
No single metric tells the full story. See the 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.
76GF Score
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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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