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FalconStor SoftwareFALC 53 ROE % is 654.28% as of Dec. 2025, which is 633% above its 10-year median of 89.21. GuruFocus rates FALC with a GF Score™ of 53/100 and a GF Value™ of $1.47 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,691 Software companies, FalconStor Software ranks better than 98.29% on this metric.
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.
FalconStor Software ROE % Related Terms
FalconStor Software ROE % Historical Data
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The historical data trend for FalconStor 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 Software - Application subindustry, FalconStor 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.
FalconStor Software ROE % vs Software Industry
For the Software industry and Technology sector, FalconStor Software's ROE % distribution charts can be found below:
* The bar in red indicates where FalconStor 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
FalconStor Software (FALC) has a ROE % of 654.28% 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 FalconStor Software and its competitors. This is 633% above median its historical median of 89.21. Over the past decade, FalconStor Software's ROE % has ranged from 89.21 to 134.72. According to the industry distribution chart, FalconStor Software ranks #46 out of 2691 companies in the Software industry, placing it in the top 1.7%.
Is FalconStor Software's ROE % too high?
FalconStor Software's current ROE % of 654.28% is 633% above median its 10-year median of 89.21. Over the past 10 years, this metric has ranged from a low of 89.21 to a high of 134.72. The Software industry median ROE % is 4.97. FalconStor Software's value of 654.28% is 13064.6% above this industry median. Based on the distribution chart, FalconStor Software ranks #46 out of 2691 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, FalconStor Software has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FalconStor Software's ROE % compare to INUV and NVNI?
According to the Software industry distribution chart, FalconStor Software ranks #46 out of 2691 companies for ROE %. This places FalconStor Software in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 4.97. FalconStor Software's value of 654.28% is 13064.6% above this benchmark. Historically, FalconStor Software's own ROE % has ranged from 89.21 to 134.72 over the past decade. While the company's 10-year median is 89.21 vs. the industry median of 4.97, FalconStor 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 4.97, based on 2,691 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. FalconStor Software's current ROE % of 654.28% is 13064.6% 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 FalconStor Software and its competitors. For the Software industry, the median ROE % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FalconStor Software's current ROE % is 654.28%, which is 633% above median its own 10-year median of 89.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FalconStor Software stock overvalued right now?
Based on GuruFocus' analysis, FalconStor Software (FALC) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.47, compared to a current price of $1.84 — trading 25.2% above its estimated fair value. The current ROE % is 654.28%, which is 633% above median its 10-year median of 89.21 and 13064.6% above the Software industry median of 4.97. FalconStor Software's overall GF Score™ is 53/100 with 5 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 FalconStor Software (FALC), the current ROE % is 654.28% 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 FalconStor Software (FALC) Overvalued in 2026?
Based on GuruFocus' analysis, FalconStor Software stock appears to be overvalued.
The current stock price of $1.84 is trading 25.2% above its estimated GF Value™ of $1.47.
GuruFocus considers FalconStor Software to be Modestly Overvalued.
Key valuation signals for FALC:
ROE %: 654.28% (633% above median its 10-year median of 89.21)
GF Value™: $1.47 vs. price of $1.84 (25.2% above fair value)
Industry Position: 13064.6% above the Software median (#46 of 2691)
No single metric tells the full story. See the FALC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FalconStor Software Inc operates in the trusted data protection software industry, modernizing disaster recovery and backup operations for the hybrid cloud environment. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing storage costs and long-term retention needs. Its products are StorSafe, StorGuard, and StorSight, which deliver data protection, cloud migration, disaster recovery, ransomware recovery, and needs across multi-OS, multi-storage, and on-premises to cloud/hybrid cloud environments. The company's geographical markets include the Americas, which generate the highest revenue, Europe, the Middle East, Africa, and others.
53GF Score
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