GBS Software AG (FRA:INW) ROCE %: 40.83% (As of Dec. 2025)

What is GBS Software AG ROCE %?

GBS Software AG FRA:INW 49 ROCE % is 40.83% as of Dec. 2025. GuruFocus rates FRA:INW with a GF Score™ of 49/100 and a GF Value™ of €1.21 (Significantly Overvalued). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. GBS Software AG's annualized ROCE % for the quarter that ended in Dec. 2025 was 40.83%.

GBS Software AG (FRA:INW) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

GBS Software AG ROCE % Related Terms

GBS Software AG ROCE % Historical Data

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The historical data trend for GBS Software AG's ROCE % can be seen below:

* 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.

GBS Software AG ROCE % Chart

GBS Software AG Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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-19.73

-28.92

7.04

17.66

17.57

GBS Software AG Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
ROCE %	Get a 7-Day Free Trial															12.28	-8.71	44.59	-6.29	40.83

49GF Score

GBS Software AG FRA:INW

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GBS Software AG ROCE % Calculation

GBS Software AG's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	0.735	/	( ( (3.858 - 0.26)	+	(5.111 - 0.343) )	/ 2 )
	=	0.735	/	( (3.598	+	4.768)	/ 2 )
	=	0.735	/	4.183
	=	17.57 %

GBS Software AG's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2025 )		(Q: Jun. 2025 )		(Q: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2025 )		(Q: Jun. 2025 )		(Q: Dec. 2025 )
	=	1.694	/	( ( (3.536 - 0.007)	+	(5.111 - 0.343) )	/ 2 )
	=	1.694	/	( ( 3.529	+	4.768 )	/ 2 )
	=	1.694	/	4.1485
	=	40.83 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 40.83% mean?

GBS Software AG (FRA:INW) has a ROCE % of 40.83% as of Dec. 2025.

Is GBS Software AG's ROCE % too high?

GBS Software AG's current ROCE % is 40.83%. The Software industry median ROCE % is 5.27. GBS Software AG's value of 40.83% is 674.8% above this industry median. Overall, GBS Software AG has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does GBS Software AG's ROCE % compare to MSFT and ORCL?

GBS Software AG's ROCE % of 40.83% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. GBS Software AG's value of 40.83% is 674.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Software company?

The median ROCE % among Software companies is 5.27, based on 2,713 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GBS Software AG's current ROCE % of 40.83% is 674.8% above 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GBS Software AG's current ROCE % is 40.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is GBS Software AG stock overvalued right now?

Based on GuruFocus' analysis, GBS Software AG (FRA:INW) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.21, compared to a current price of €4.00 — trading 230.6% above its estimated fair value. The current ROCE % is 40.83% and 674.8% above the Software industry median of 5.27. GBS Software AG's overall GF Score™ is 49/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For GBS Software AG (FRA:INW), the current ROCE % is 40.83% as of Dec. 2025. 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 GBS Software AG (FRA:INW) Overvalued in 2026?

Based on GuruFocus' analysis, GBS Software AG stock appears to be overvalued. The current stock price of €4.00 is trading 230.6% above its estimated GF Value™ of €1.21. GuruFocus considers GBS Software AG to be Significantly Overvalued.

Key valuation signals for FRA:INW:

ROCE %: 40.83%
GF Value™: €1.21 vs. price of €4.00 (230.6% above fair value)
GF Score™: 49/100 with 7 warning signs
Industry Position: 674.8% above the Software median

No single metric tells the full story. See the FRA:INW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

GBS Software AG Business Description

Industry Technology Software

Comparable Companies XTER:UMD MSFT ORCL PLTR PANW CRWD FTNT SNPS HKSE:02513 NET CRWV XYZ XAMS:ADYEN NTAP TWLO MDB VRSN CPAY ZS AKAM

Other Exchanges INW:Germany

Address Am Storrenacker 1a, Karlsruhe, DEU, 76139

Website https://www.gbs-ag.com

GBS Software AG provides solutions and services in the fields of messaging security and workflow for the IBM and Microsoft collaboration platforms. It acts as a providers of email security and workflow management solutions. The company operates in Europe, North America, and Asia. It provides retirement management solutions as well. The group provides the following services: Domino Administration, XPages migration, Mobility, Consulting, and Training and mentoring.

49GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€4.00

Price

€1.21

GF Value

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