BRK-BBULLISH

BRK-B Return on Equity (ROE) Analysis

12.1%

Higher than 33% of Financial Services sector peers

Updated 948h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, and Berkshire Hathaway’s 10.5% means it earns $10.50 for every $100 of equity.

Sector Performance

33th percentile

BRK-B

12.1%

Sector Median

13.3%

Sector Avg

19.5%

Prior Period

10.5%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, and Berkshire Hathaway’s 10.5% means it earns $10.50 for every $100 of equity.

That sits below the Financial Services sector median of 12.4%, placing the company at the 25th percentile among peers, so most comparable firms achieve higher returns on their equity. The metric trend is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there are no historical values beyond the current 10.5%. With a level that trails the sector but no trend data to show momentum, the investment picture carries moderate risk—returns are currently subpar, yet the absence of a declining path leaves room for stability or improvement. Because the ROE is below average but not an outlier, this metric neither strongly supports nor contradicts the NEUTRAL verdict—it aligns with a balanced view that the stock is neither clearly undervalued nor overvalued on this measure.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BRK-B?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BRK-B's Return on Equity (ROE) compare to its sector?

BRK-B's Return on Equity (ROE) of 12.1% compares to a Financial Services sector median of 13.3%, placing it in the 33th percentile.

Who are BRK-B's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (12.9%), HDB (13.8%), AFL (12.4%), ARES (12.3%), RF (11.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.