Is cost of equity the same as return on equity?

No. Return on equity is what a company actually earned on its book equity over a past year. Cost of equity is the return shareholders require going forward. One is an accounting result and the other is a market expectation, and comparing the two shows whether the company is creating value.

ROE is net income divided by shareholders' equity from the balance sheet. A company that earns $12 million on $100 million of equity has a 12% ROE. If its cost of equity is 11%, it is earning slightly more than investors demand. An ROE of 8% against the same 11% would mean it is falling short.

ROE can jump around with one-time gains, buybacks and accounting choices, so a single year says little. Cost of equity comes from inputs like the risk-free rate and beta. See the glossary entries for return on equity and cost of equity.