The historical rank and industry rank for Netwealth Group's ROE % or its related term are showing as below:
ASX:NWL'
s ROE % Range Over the Past 10 Years
Min: 30.88 Med: 60.71 Max: 67.81
Current: 32.28
During the past 8 years, Netwealth Group's highest ROE % was 67.81%. The lowest was 30.88%. And the median was 60.71%.
ASX:NWL's ROE % is ranked better than 90.97% of 2681
companies
in the Software industry
Industry Median: 4.73
vs ASX:NWL: 32.28
Netwealth Group (ASX:NWL) 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.
Netwealth Group ROE % Related Terms
Netwealth Group ROE % Historical Data
* Premium members only.
The historical data trend for Netwealth Group'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 Software - Application subindustry, Netwealth Group'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.
Netwealth Group ROE % vs Software Industry
For the Software industry and Technology sector, Netwealth Group's ROE % distribution charts can be found below:
* The bar in red indicates where Netwealth Group'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.
Netwealth Group (ASX:NWL) has a ROE % of -2.49% 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 Netwealth Group and its competitors. Over the past decade, Netwealth Group's ROE % has ranged from 30.88 to 67.81. According to the industry distribution chart, Netwealth Group ranks #242 out of 2681 companies in the Software industry, placing it in the top 9%.
Is Netwealth Group's ROE % too high?
Netwealth Group's current ROE % is -2.49%. Over the past 10 years, this metric has ranged from a low of 30.88 to a high of 67.81. Based on the distribution chart, Netwealth Group ranks #242 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Netwealth Group has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netwealth Group's ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Netwealth Group ranks #242 out of 2681 companies for ROE %. This places Netwealth Group in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Historically, Netwealth Group's own ROE % has ranged from 30.88 to 67.81 over the past decade. 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 Software company?
The median ROE % among Software companies is 4.73, based on 2,681 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. 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 Netwealth Group and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netwealth Group's current ROE % is -2.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netwealth Group stock overvalued right now?
Based on GuruFocus' analysis, Netwealth Group (ASX:NWL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$35.09, compared to a current price of A$20.29 — trading 42.2% below its estimated fair value. The current ROE % is -2.49%. Netwealth Group's overall GF Score™ is 87/100 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 Netwealth Group (ASX:NWL), the current ROE % is -2.49% 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 Netwealth Group (ASX:NWL) Overvalued in 2026?
Based on GuruFocus' analysis, Netwealth Group stock appears to be undervalued.
The current stock price of A$20.29 is trading 42.2% below its estimated GF Value™ of A$35.09.
GuruFocus considers Netwealth Group to be Significantly Undervalued.
Key valuation signals for ASX:NWL:
ROE %: -2.49%
GF Value™: A$35.09 vs. price of A$20.29 (42.2% below fair value)
No single metric tells the full story. See the ASX:NWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netwealth provides cloud-based investment administration software as a service in Australia via its proprietary platform. Netwealth's platform provides portfolio administration, investment management tools, and investment and managed account services to financial intermediaries and directly to clients. The company charges SaaS fees based on funds under administration and management on its platform. Netwealth also offers Netwealth-branded investment products on its platform, which are managed by third-party investment managers.
87GF Score
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