Advanced Braking TechnologyASX:ABV 68 ROE % is 9.72% as of Dec. 2025, which is 5% above its 10-year median of 9.25. GuruFocus rates ASX:ABV with a GF Score™ of 68/100 and a GF Value™ of A$0.11 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Advanced Braking Technology ranks better than 87.92% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Auto Parts subindustry, Advanced Braking Technology's ROE %, along with its competitors' market caps and ROE % 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.
Advanced Braking Technology ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advanced Braking Technology's ROE % distribution charts can be found below:
* The bar in red indicates where Advanced Braking Technology's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Advanced Braking Technology (ASX:ABV) has a ROE % of 9.72% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Advanced Braking Technology and its competitors. This is near median its historical median of 9.25. According to the industry distribution chart, Advanced Braking Technology ranks #158 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 12.1%.
Is Advanced Braking Technology's ROE % too high?
Advanced Braking Technology's current ROE % of 9.72% is near median its 10-year median of 9.25. The Vehicles & Parts industry median ROE % is 6.62. Advanced Braking Technology's value of 9.72% is 46.8% above this industry median. Based on the distribution chart, Advanced Braking Technology ranks #158 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Braking Technology has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Braking Technology's ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Advanced Braking Technology ranks #158 out of 1308 companies for ROE %. This places Advanced Braking Technology in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Advanced Braking Technology's value of 9.72% is 46.8% above this benchmark. While the company's 10-year median is 9.25 vs. the industry median of 6.62, Advanced Braking Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advanced Braking Technology's current ROE % of 9.72% is 46.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Advanced Braking Technology and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Braking Technology's current ROE % is 9.72%, which is near median its own 10-year median of 9.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Braking Technology stock overvalued right now?
Based on GuruFocus' analysis, Advanced Braking Technology (ASX:ABV) is currently considered Fairly Valued. The stock's GF Value™ is A$0.11, compared to a current price of A$0.11 — trading 4.5% below its estimated fair value. The current ROE % is 9.72%, which is near median its 10-year median of 9.25 and 46.8% above the Vehicles & Parts industry median of 6.62. Advanced Braking Technology's overall GF Score™ is 68/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Advanced Braking Technology (ASX:ABV), the current ROE % is 9.72% 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 Advanced Braking Technology (ASX:ABV) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Braking Technology stock appears to be undervalued.
The current stock price of A$0.11 is trading 4.5% below its estimated GF Value™ of A$0.11.
GuruFocus considers Advanced Braking Technology to be Fairly Valued.
Key valuation signals for ASX:ABV:
ROE %: 9.72% (near median its 10-year median of 9.25)
GF Value™: A$0.11 vs. price of A$0.11 (4.5% below fair value)
Industry Position: 46.8% above the Vehicles & Parts median (#158 of 1308)
No single metric tells the full story. See the ASX:ABV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Braking Technology Ltd is an Australian firm engaged in the commercialization, research, development, and manufacture of the ABT Failsafe Brakes, ABT Failsafe Emergency Driveline Brakes, Terra Dura Brakes, and associated braking systems. It develops its product portfolio for a diverse range of industries such as mining, defense, civil construction, and waste management industries.
68GF Score
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