Reliance WorldwideASX:RWC +1.06%86 ROE % is 6.25% as of Dec. 2025, which is 37% below its 10-year median of 9.88. GuruFocus rates ASX:RWC with a GF Score™ of 86/100 and a GF Value™ of A$4.35 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,743 Construction companies, Reliance Worldwide ranks better than 52.61% on this metric.
The historical rank and industry rank for Reliance Worldwide's ROE % or its related term are showing as below:
ASX:RWC'
s ROE % Range Over the Past 10 Years
Min: 6.29 Med: 9.88 Max: 32.05
Current: 7.45
During the past 9 years, Reliance Worldwide's highest ROE % was 32.05%. The lowest was 6.29%. And the median was 9.88%.
ASX:RWC's ROE % is ranked better than 52.61% of 1743
companies
in the Construction industry
Industry Median: 6.69
vs ASX:RWC: 7.45
Reliance Worldwide (ASX:RWC) 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.
Reliance Worldwide ROE % Related Terms
Reliance Worldwide ROE % Historical Data
* Premium members only.
The historical data trend for Reliance Worldwide'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 Building Products & Equipment subindustry, Reliance Worldwide'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.
Reliance Worldwide ROE % vs Construction Industry
For the Construction industry and Industrials sector, Reliance Worldwide's ROE % distribution charts can be found below:
* The bar in red indicates where Reliance Worldwide'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.
Reliance Worldwide (ASX:RWC) has a ROE % of 6.25% 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 Reliance Worldwide and its competitors. This is 37% below median its historical median of 9.88. Over the past decade, Reliance Worldwide's ROE % has ranged from 6.29 to 32.05. According to the industry distribution chart, Reliance Worldwide ranks #826 out of 1743 companies in the Construction industry, placing it in the top 47.4%.
Is Reliance Worldwide's ROE % too high?
Reliance Worldwide's current ROE % of 6.25% is 37% below median its 10-year median of 9.88. Over the past 10 years, this metric has ranged from a low of 6.29 to a high of 32.05. The Construction industry median ROE % is 6.69. Reliance Worldwide's value of 6.25% is 6.6% below this industry median. Based on the distribution chart, Reliance Worldwide ranks #826 out of 1743 companies in the Construction industry, which is above the industry midpoint. Overall, Reliance Worldwide has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reliance Worldwide's ROE % compare to TT and JCI?
According to the Construction industry distribution chart, Reliance Worldwide ranks #826 out of 1743 companies for ROE %. This puts Reliance Worldwide in the upper half of its industry. The industry median ROE % is 6.69. Reliance Worldwide's value of 6.25% is 6.6% below this benchmark. Historically, Reliance Worldwide's own ROE % has ranged from 6.29 to 32.05 over the past decade. While the company's 10-year median is 9.88 vs. the industry median of 6.69, Reliance Worldwide has consistently been below 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 Construction company?
The median ROE % among Construction companies is 6.69, based on 1,743 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. Reliance Worldwide's current ROE % of 6.25% is 6.6% below 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 Reliance Worldwide and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance Worldwide's current ROE % is 6.25%, which is 37% below median its own 10-year median of 9.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Reliance Worldwide (ASX:RWC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$4.35, compared to a current price of A$3.81 — trading 12.4% below its estimated fair value. The current ROE % is 6.25%, which is 37% below median its 10-year median of 9.88 and 6.6% below the Construction industry median of 6.69. Reliance Worldwide's overall GF Score™ is 86/100 with 6 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 Reliance Worldwide (ASX:RWC), the current ROE % is 6.25% 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 Reliance Worldwide (ASX:RWC) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Worldwide stock appears to be undervalued.
The current stock price of A$3.81 is trading 12.4% below its estimated GF Value™ of A$4.35.
GuruFocus considers Reliance Worldwide to be Modestly Undervalued.
Key valuation signals for ASX:RWC:
ROE %: 6.25% (37% below median its 10-year median of 9.88)
GF Value™: A$4.35 vs. price of A$3.81 (12.4% below fair value)
Industry Position: 6.6% below the Construction median (#826 of 1743)
No single metric tells the full story. See the ASX:RWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about two-thirds of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 15% and 20%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
86GF Score
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