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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
* 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 Capital Markets subindustry, Geojit Financial Services'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.
Geojit Financial Services ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Geojit Financial Services's ROE % distribution charts can be found below:
* The bar in red indicates where Geojit Financial Services'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Geojit Financial Services (BOM:532285) has a ROE % of 4.36% 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 Geojit Financial Services and its competitors. This is 68% below median its historical median of 13.69. Over the past decade, Geojit Financial Services' ROE % has ranged from 4.25 to 23.37. According to the industry distribution chart, Geojit Financial Services ranks #320 out of 794 companies in the Capital Markets industry, placing it in the top 40.3%.
Is Geojit Financial Services' ROE % too high?
Geojit Financial Services' current ROE % of 4.36% is 68% below median its 10-year median of 13.69. Over the past 10 years, this metric has ranged from a low of 4.25 to a high of 23.37. The Capital Markets industry median ROE % is 6.01. Geojit Financial Services' value of 4.36% is 27.4% below this industry median. Based on the distribution chart, Geojit Financial Services ranks #320 out of 794 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Geojit Financial Services has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Geojit Financial Services' ROE % compare to MS and GS?
According to the Capital Markets industry distribution chart, Geojit Financial Services ranks #320 out of 794 companies for ROE %. This puts Geojit Financial Services in the upper half of its industry. The industry median ROE % is 6.01. Geojit Financial Services' value of 4.36% is 27.4% below this benchmark. Historically, Geojit Financial Services' own ROE % has ranged from 4.25 to 23.37 over the past decade. While the company's 10-year median is 13.69 vs. the industry median of 6.01, Geojit Financial Services 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.01, based on 794 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. Geojit Financial Services's current ROE % of 4.36% is 27.4% 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 Geojit Financial Services and its competitors. For the Capital Markets industry, the median ROE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Geojit Financial Services's current ROE % is 4.36%, which is 68% below median its own 10-year median of 13.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Geojit Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Geojit Financial Services (BOM:532285) is currently considered Fairly Valued. The stock's GF Value™ is ₹75.26, compared to a current price of ₹78.79 — trading 4.7% above its estimated fair value. The current ROE % is 4.36%, which is 68% below median its 10-year median of 13.69 and 27.4% below the Capital Markets industry median of 6.01. Geojit Financial Services' overall GF Score™ is 74/100 with 9 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 Geojit Financial Services (BOM:532285), the current ROE % is 4.36% 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 Geojit Financial Services (BOM:532285) Overvalued in 2026?
Based on GuruFocus' analysis, Geojit Financial Services stock appears to be overvalued.
The current stock price of ₹78.79 is trading 4.7% above its estimated GF Value™ of ₹75.26.
GuruFocus considers Geojit Financial Services to be Fairly Valued.
Key valuation signals for BOM:532285:
ROE %: 4.36% (68% below median its 10-year median of 13.69)
GF Value™: ₹75.26 vs. price of ₹78.79 (4.7% above fair value)
Industry Position: 27.4% below the Capital Markets median (#320 of 794)
No single metric tells the full story. See the BOM:532285 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Geojit Financial Services Ltd is an investment services company. The company's operating segments include Financial services and Software services. The Financial services segment consists of brokerage services, depository services, financial products distribution services, portfolio management services, and other allied activities. The Software services segment consists of income from the development and maintenance of software. It generates maximum revenue from the Financial Services segment. The geographical segments of the group are India and other countries.
74GF Score
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