Bajaj FinanceBOM:500034 +0.31%68 ROE % is 19.17% as of Mar. 2026, which is 5% below its 10-year median of 20.15. GuruFocus rates BOM:500034 with a GF Score™ of 68/100 and a GF Value™ of ₹1,133.89 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 529 Credit Services companies, Bajaj Finance ranks better than 85.26% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Bajaj Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹218,583 Mil. Bajaj Finance's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹1,139,990 Mil. Therefore, Bajaj Finance's annualized ROE % for the quarter that ended in Mar. 2026 was 19.17%.
The historical rank and industry rank for Bajaj Finance's ROE % or its related term are showing as below:
BOM:500034'
s ROE % Range Over the Past 10 Years
Min: 12.77 Med: 20.15 Max: 23.46
Current: 18.17
During the past 13 years, Bajaj Finance's highest ROE % was 23.46%. The lowest was 12.77%. And the median was 20.15%.
BOM:500034's ROE % is ranked better than 85.26% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs BOM:500034: 18.17
Bajaj Finance (BOM:500034) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
Bajaj Finance ROE % Related Terms
Bajaj Finance ROE % Historical Data
* Premium members only.
The historical data trend for Bajaj Finance'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 Credit Services subindustry, Bajaj Finance'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.
Bajaj Finance ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bajaj Finance's ROE % distribution charts can be found below:
* The bar in red indicates where Bajaj Finance'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Bajaj Finance (BOM:500034) has a ROE % of 19.17% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bajaj Finance and its competitors. This is near median its historical median of 20.15. Over the past decade, Bajaj Finance's ROE % has ranged from 12.77 to 23.46. According to the industry distribution chart, Bajaj Finance ranks #78 out of 529 companies in the Credit Services industry, placing it in the top 14.7%.
Is Bajaj Finance's ROE % too high?
Bajaj Finance's current ROE % of 19.17% is near median its 10-year median of 20.15. Over the past 10 years, this metric has ranged from a low of 12.77 to a high of 23.46. The Credit Services industry median ROE % is 6.61. Bajaj Finance's value of 19.17% is 190% above this industry median. Based on the distribution chart, Bajaj Finance ranks #78 out of 529 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Bajaj Finance has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finance's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Bajaj Finance ranks #78 out of 529 companies for ROE %. This places Bajaj Finance in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.61. Bajaj Finance's value of 19.17% is 190% above this benchmark. Historically, Bajaj Finance's own ROE % has ranged from 12.77 to 23.46 over the past decade. While the company's 10-year median is 20.15 vs. the industry median of 6.61, Bajaj Finance 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 Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 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. Bajaj Finance's current ROE % of 19.17% is 190% 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 Bajaj Finance and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finance's current ROE % is 19.17%, which is near median its own 10-year median of 20.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finance stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finance (BOM:500034) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,133.89, compared to a current price of ₹982.90 — trading 13.3% below its estimated fair value. The current ROE % is 19.17%, which is near median its 10-year median of 20.15 and 190% above the Credit Services industry median of 6.61. Bajaj Finance's overall GF Score™ is 68/100 with 3 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 Bajaj Finance (BOM:500034), the current ROE % is 19.17% as of Mar. 2026. 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 Bajaj Finance (BOM:500034) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finance stock appears to be undervalued.
The current stock price of ₹982.90 is trading 13.3% below its estimated GF Value™ of ₹1,133.89.
GuruFocus considers Bajaj Finance to be Modestly Undervalued.
Key valuation signals for BOM:500034:
ROE %: 19.17% (near median its 10-year median of 20.15)
GF Value™: ₹1,133.89 vs. price of ₹982.90 (13.3% below fair value)
Industry Position: 190% above the Credit Services median (#78 of 529)
No single metric tells the full story. See the BOM:500034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finance Ltd is the holding company for various financial services businesses under the Bajaj Group, which operates in India. The company is an NBFC in India offering payments, partnerships, services, and lending solutions to customers. The company's model is focused on the acquisition of customers and offering multiple loans and services on a cross-sell basis to meet their financial service needs. The company provides discretionary spending across consumer electronics, furniture, and digital products in India. The company's strategies and structure are closely aligned with those of commercial banks in India. All of its revenue is generated from India.
68GF Score
Get the complete analysis for BOM:500034
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:500034 has been successfully added to your 
