IPHASX:IPH -1.55%86 ROE % is 11.96% as of Dec. 2025, which is 15% below its 10-year median of 14.15. GuruFocus rates ASX:IPH with a GF Score™ of 86/100 and a GF Value™ of A$7.13 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,058 Business Services companies, IPH ranks better than 57.94% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. IPH's annualized net income for the quarter that ended in Dec. 2025 was A$82.4 Mil. IPH's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was A$689.1 Mil. Therefore, IPH's annualized ROE % for the quarter that ended in Dec. 2025 was 11.96%.
The historical rank and industry rank for IPH's ROE % or its related term are showing as below:
ASX:IPH'
s ROE % Range Over the Past 10 Years
Min: 10.04 Med: 14.15 Max: 30.26
Current: 10.12
During the past 11 years, IPH's highest ROE % was 30.26%. The lowest was 10.04%. And the median was 14.15%.
ASX:IPH's ROE % is ranked better than 57.94% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs ASX:IPH: 10.12
IPH (ASX:IPH) ROE % Explanation
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.
IPH ROE % Related Terms
IPH ROE % Historical Data
* Premium members only.
The historical data trend for IPH's ROE % 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.
For the Specialty Business Services subindustry, IPH'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.
IPH ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, IPH's ROE % distribution charts can be found below:
* The bar in red indicates where IPH'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.
IPH (ASX:IPH) has a ROE % of 11.96% 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 IPH and its competitors. This is 15% below median its historical median of 14.15. Over the past decade, IPH's ROE % has ranged from 10.04 to 30.26. According to the industry distribution chart, IPH ranks #445 out of 1058 companies in the Business Services industry, placing it in the top 42.1%.
Is IPH's ROE % too high?
IPH's current ROE % of 11.96% is 15% below median its 10-year median of 14.15. Over the past 10 years, this metric has ranged from a low of 10.04 to a high of 30.26. The Business Services industry median ROE % is 8.10. IPH's value of 11.96% is 47.7% above this industry median. Based on the distribution chart, IPH ranks #445 out of 1058 companies in the Business Services industry, which is above the industry midpoint. Overall, IPH has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IPH's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, IPH ranks #445 out of 1058 companies for ROE %. This puts IPH in the upper half of its industry. The industry median ROE % is 8.10. IPH's value of 11.96% is 47.7% above this benchmark. Historically, IPH's own ROE % has ranged from 10.04 to 30.26 over the past decade. While the company's 10-year median is 14.15 vs. the industry median of 8.10, IPH 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 Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 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. IPH's current ROE % of 11.96% is 47.7% 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 IPH and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPH's current ROE % is 11.96%, which is 15% below median its own 10-year median of 14.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPH stock overvalued right now?
Based on GuruFocus' analysis, IPH (ASX:IPH) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.13, compared to a current price of A$3.80 — trading 46.7% below its estimated fair value. The current ROE % is 11.96%, which is 15% below median its 10-year median of 14.15 and 47.7% above the Business Services industry median of 8.10. IPH's overall GF Score™ is 86/100 with 5 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 IPH (ASX:IPH), the current ROE % is 11.96% 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 IPH (ASX:IPH) Overvalued in 2026?
Based on GuruFocus' analysis, IPH stock appears to be undervalued.
The current stock price of A$3.80 is trading 46.7% below its estimated GF Value™ of A$7.13.
GuruFocus considers IPH to be Significantly Undervalued.
Key valuation signals for ASX:IPH:
ROE %: 11.96% (15% below median its 10-year median of 14.15)
GF Value™: A$7.13 vs. price of A$3.80 (46.7% below fair value)
Industry Position: 47.7% above the Business Services median (#445 of 1058)
No single metric tells the full story. See the ASX:IPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base comprises multinationals, public-sector research organizations, and local businesses across industries such as healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.
86GF Score
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