CHKP'
s ROE % Range Over the Past 10 Years
Min: 20.64 Med: 24.17 Max: 37.27
Current: 36.83
During the past 13 years, Check Point Software Technologies's highest ROE % was 37.27%. The lowest was 20.64%. And the median was 24.17%.
CHKP's ROE % is ranked better than 92.35% of 2681
companies
in the Software industry
Industry Median: 4.73
vs CHKP: 36.83
Check Point Software Technologies (NAS:CHKP) 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.
Check Point Software Technologies ROE % Related Terms
Check Point Software Technologies ROE % Historical Data
* 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 Software - Infrastructure subindustry, Check Point Software Technologies'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.
Check Point Software Technologies ROE % vs Software Industry
* 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.
Check Point Software Technologies (CHKP) has a ROE % of 26.91% 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 Check Point Software Technologies and its competitors. This is 11% above median its historical median of 24.17. Over the past decade, Check Point Software Technologies' ROE % has ranged from 20.64 to 37.27. According to the industry distribution chart, Check Point Software Technologies ranks #205 out of 2681 companies in the Software industry, placing it in the top 7.6%.
Is Check Point Software Technologies' ROE % too high?
Check Point Software Technologies' current ROE % of 26.91% is 11% above median its 10-year median of 24.17. Over the past 10 years, this metric has ranged from a low of 20.64 to a high of 37.27. The Software industry median ROE % is 4.73. Check Point Software Technologies' value of 26.91% is 468.9% above this industry median. Based on the distribution chart, Check Point Software Technologies ranks #205 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Check Point Software Technologies has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Check Point Software Technologies' ROE % compare to NTNX and TOST?
According to the Software industry distribution chart, Check Point Software Technologies ranks #205 out of 2681 companies for ROE %. This places Check Point Software Technologies in the top 8% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Check Point Software Technologies' value of 26.91% is 468.9% above this benchmark. Historically, Check Point Software Technologies' own ROE % has ranged from 20.64 to 37.27 over the past decade. While the company's 10-year median is 24.17 vs. the industry median of 4.73, Check Point Software Technologies 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 2,681 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. Check Point Software Technologies's current ROE % of 26.91% is 468.9% 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 Check Point Software Technologies 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. Check Point Software Technologies's current ROE % is 26.91%, which is 11% above median its own 10-year median of 24.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Check Point Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Check Point Software Technologies (CHKP) is currently considered Significantly Undervalued. The stock's GF Value™ is $204.49, compared to a current price of $124.83 — trading 39% below its estimated fair value. The current ROE % is 26.91%, which is 11% above median its 10-year median of 24.17 and 468.9% above the Software industry median of 4.73. Check Point Software Technologies' overall GF Score™ is 82/100 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 Check Point Software Technologies (CHKP), the current ROE % is 26.91% 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 Check Point Software Technologies (CHKP) Overvalued in 2026?
Based on GuruFocus' analysis, Check Point Software Technologies stock appears to be undervalued.
The current stock price of $124.83 is trading 39% below its estimated GF Value™ of $204.49.
GuruFocus considers Check Point Software Technologies to be Significantly Undervalued.
Key valuation signals for CHKP:
ROE %: 26.91% (11% above median its 10-year median of 24.17)
GF Value™: $204.49 vs. price of $124.83 (39% below fair value)
Industry Position: 468.9% above the Software median (#205 of 2681)
No single metric tells the full story. See the CHKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Check Point Software Technologies Business Description
Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.
82GF Score
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