return on equity

noun

Accounting.

1. the amount of profit computed by dividing net income before taxes less preferred dividends by the value of stockholders' equity, usually expressed as a percentage. ROE

Example Sentences

The blue line in the chart below shows the relative price-to-book ratio — a valuation metric for growth stocks versus value stocks — while the orange line shows the difference in return on equity between growth and value stocks.

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He notes that the company’s 3Q revenue, profit, and return on equity were likely slightly below management’s 2025 guidance for “sound growth.”

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Goldman’s return on equity, a measure how well an investment bank does with its underlying assets, was 14.8% on an annualized basis.

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The five members of the Georgia Public Service Commission ordered that the company can’t earn an additional return on equity through a construction surcharge levied on Georgia Power’s 2.7 million customers after March 30.

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"He bought a 10% return on equity, similar to UniCredit's, at roughly half the value of the book, that is for a cheaper price than his own bank. That's brilliant." he said.

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