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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
* 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 Consumer Electronics subindustry, Virtuoso OptoElectronics'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.
Virtuoso OptoElectronics ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Virtuoso OptoElectronics's ROE % distribution charts can be found below:
* The bar in red indicates where Virtuoso OptoElectronics'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Virtuoso OptoElectronics (BOM:543597) has a ROE % of 6.56% 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 Virtuoso OptoElectronics and its competitors. This is 48% below median its historical median of 12.53. Over the past decade, Virtuoso OptoElectronics' ROE % has ranged from 4.32 to 20.97. According to the industry distribution chart, Virtuoso OptoElectronics ranks #1239 out of 2422 companies in the Hardware industry, placing it in the top 51.2%.
Is Virtuoso OptoElectronics' ROE % too high?
Virtuoso OptoElectronics' current ROE % of 6.56% is 48% below median its 10-year median of 12.53. Over the past 10 years, this metric has ranged from a low of 4.32 to a high of 20.97. The Hardware industry median ROE % is 4.66. Virtuoso OptoElectronics' value of 6.56% is 40.8% above this industry median. Based on the distribution chart, Virtuoso OptoElectronics ranks #1239 out of 2422 companies in the Hardware industry, which is below the industry midpoint. Overall, Virtuoso OptoElectronics has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Virtuoso OptoElectronics' ROE % compare to AAPL?
According to the Hardware industry distribution chart, Virtuoso OptoElectronics ranks #1239 out of 2422 companies for ROE %. This places Virtuoso OptoElectronics in the lower half of its industry. The industry median ROE % is 4.66. Virtuoso OptoElectronics' value of 6.56% is 40.8% above this benchmark. Historically, Virtuoso OptoElectronics' own ROE % has ranged from 4.32 to 20.97 over the past decade. While the company's 10-year median is 12.53 vs. the industry median of 4.66, Virtuoso OptoElectronics 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 Hardware company?
The median ROE % among Hardware companies is 4.66, based on 2,422 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. Virtuoso OptoElectronics's current ROE % of 6.56% is 40.8% 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 Virtuoso OptoElectronics and its competitors. For the Hardware industry, the median ROE % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virtuoso OptoElectronics's current ROE % is 6.56%, which is 48% below median its own 10-year median of 12.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virtuoso OptoElectronics stock overvalued right now?
Based on GuruFocus' analysis, Virtuoso OptoElectronics (BOM:543597) is currently considered Fairly Valued. The stock's GF Value™ is ₹470.93, compared to a current price of ₹468.90 — trading 0.4% below its estimated fair value. The current ROE % is 6.56%, which is 48% below median its 10-year median of 12.53 and 40.8% above the Hardware industry median of 4.66. Virtuoso OptoElectronics' overall GF Score™ is 88/100 with 7 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 Virtuoso OptoElectronics (BOM:543597), the current ROE % is 6.56% 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 Virtuoso OptoElectronics (BOM:543597) Overvalued in 2026?
Based on GuruFocus' analysis, Virtuoso OptoElectronics stock appears to be undervalued.
The current stock price of ₹468.90 is trading 0.4% below its estimated GF Value™ of ₹470.93.
GuruFocus considers Virtuoso OptoElectronics to be Fairly Valued.
Key valuation signals for BOM:543597:
ROE %: 6.56% (48% below median its 10-year median of 12.53)
GF Value™: ₹470.93 vs. price of ₹468.90 (0.4% below fair value)
Industry Position: 40.8% above the Hardware median (#1239 of 2422)
No single metric tells the full story. See the BOM:543597 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virtuoso Optoelectronics Ltd is a manufacturing company specializing in high-volume production of consumer and industrial goods. It operates as an original equipment manufacturer and original design manufacturer, producing products such as white goods, LED lighting, air conditioners, water dispensers, and freezers. The company integrates design, development, and manufacturing to serve clients in the consumer appliances and electronics sectors. Virtuoso operates majorly in India, targeting both domestic and international markets with a focus on delivering reliable and cost-effective solutions.
88GF Score
Get the complete analysis for BOM:543597
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:543597 has been successfully added to your 
