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Sonata SoftwareBOM:532221 +11.02%92 ROE % is 27.41% as of Mar. 2026, which is 11% below its 10-year median of 30.97. GuruFocus rates BOM:532221 with a GF Score™ of 92/100 and a GF Value™ of ₹695.37 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,683 Software companies, Sonata Software ranks better than 87.63% on this metric.
The historical rank and industry rank for Sonata Software's ROE % or its related term are showing as below:
BOM:532221'
s ROE % Range Over the Past 10 Years
Min: 22.79 Med: 30.97 Max: 38.52
Current: 25.88
During the past 13 years, Sonata Software's highest ROE % was 38.52%. The lowest was 22.79%. And the median was 30.97%.
BOM:532221's ROE % is ranked better than 87.63% of 2683
companies
in the Software industry
Industry Median: 4.73
vs BOM:532221: 25.88
Sonata Software (BOM:532221) 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.
Sonata Software ROE % Related Terms
Sonata Software ROE % Historical Data
* Premium members only.
The historical data trend for Sonata Software'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 Information Technology Services subindustry, Sonata Software'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.
Sonata Software ROE % vs Software Industry
For the Software industry and Technology sector, Sonata Software's ROE % distribution charts can be found below:
* The bar in red indicates where Sonata Software'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.
Sonata Software (BOM:532221) has a ROE % of 27.41% 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 Sonata Software and its competitors. This is 11% below median its historical median of 30.97. Over the past decade, Sonata Software's ROE % has ranged from 22.79 to 38.52. According to the industry distribution chart, Sonata Software ranks #332 out of 2683 companies in the Software industry, placing it in the top 12.4%.
Is Sonata Software's ROE % too high?
Sonata Software's current ROE % of 27.41% is 11% below median its 10-year median of 30.97. Over the past 10 years, this metric has ranged from a low of 22.79 to a high of 38.52. The Software industry median ROE % is 4.73. Sonata Software's value of 27.41% is 479.5% above this industry median. Based on the distribution chart, Sonata Software ranks #332 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sonata Software has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonata Software's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Sonata Software ranks #332 out of 2683 companies for ROE %. This places Sonata Software in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Sonata Software's value of 27.41% is 479.5% above this benchmark. Historically, Sonata Software's own ROE % has ranged from 22.79 to 38.52 over the past decade. While the company's 10-year median is 30.97 vs. the industry median of 4.73, Sonata Software 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 Software company?
The median ROE % among Software companies is 4.73, based on 2,683 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. Sonata Software's current ROE % of 27.41% is 479.5% 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 Sonata Software 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. Sonata Software's current ROE % is 27.41%, which is 11% below median its own 10-year median of 30.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonata Software stock overvalued right now?
Based on GuruFocus' analysis, Sonata Software (BOM:532221) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹695.37, compared to a current price of ₹316.45 — trading 54.5% below its estimated fair value. The current ROE % is 27.41%, which is 11% below median its 10-year median of 30.97 and 479.5% above the Software industry median of 4.73. Sonata Software's overall GF Score™ is 92/100 with 4 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 Sonata Software (BOM:532221), the current ROE % is 27.41% 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 Sonata Software (BOM:532221) Overvalued in 2026?
Based on GuruFocus' analysis, Sonata Software stock appears to be undervalued.
The current stock price of ₹316.45 is trading 54.5% below its estimated GF Value™ of ₹695.37.
GuruFocus considers Sonata Software to be Significantly Undervalued.
Key valuation signals for BOM:532221:
ROE %: 27.41% (11% below median its 10-year median of 30.97)
GF Value™: ₹695.37 vs. price of ₹316.45 (54.5% below fair value)
Industry Position: 479.5% above the Software median (#332 of 2683)
No single metric tells the full story. See the BOM:532221 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonata Software Ltd is a technology company. The company is engaged in the business of software development, technical services, and product marketing. The company's geographical segments include India and Other than India. It generates maximum revenue from India. The company serves ISVs (Independent Software Vendors); Travel and Tourism; Retail; BFSI; and other industries. Its solution portfolio includes SAP Modernization, Application Management, Managed Cloud Services, Technology Consulting, and other technology-related products and services.
92GF Score
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