WavestoneFRA:2WSA -4.56%93 ROE % is 9.50% as of Sep. 2025, which is 49% below its 10-year median of 18.50. GuruFocus rates FRA:2WSA with a GF Score™ of 93/100 and a GF Value™ of €68.59 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,682 Software companies, Wavestone ranks better than 69.05% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Wavestone's annualized net income for the quarter that ended in Sep. 2025 was €60.6 Mil. Wavestone's average Total Stockholders Equity over the quarter that ended in Sep. 2025 was €638.0 Mil. Therefore, Wavestone's annualized ROE % for the quarter that ended in Sep. 2025 was 9.50%.
The historical rank and industry rank for Wavestone's ROE % or its related term are showing as below:
FRA:2WSA'
s ROE % Range Over the Past 10 Years
Min: 12.58 Med: 18.5 Max: 22.72
Current: 12.72
During the past 13 years, Wavestone's highest ROE % was 22.72%. The lowest was 12.58%. And the median was 18.50%.
FRA:2WSA's ROE % is ranked better than 69.05% of 2682
companies
in the Software industry
Industry Median: 4.72
vs FRA:2WSA: 12.72
Wavestone (FRA:2WSA) 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 two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.
Wavestone ROE % Related Terms
Wavestone ROE % Historical Data
* Premium members only.
The historical data trend for Wavestone'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, Wavestone'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.
Wavestone ROE % vs Software Industry
For the Software industry and Technology sector, Wavestone's ROE % distribution charts can be found below:
* The bar in red indicates where Wavestone'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 (Sep. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Wavestone (FRA:2WSA) has a ROE % of 9.50% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Wavestone and its competitors. This is 49% below median its historical median of 18.50. Over the past decade, Wavestone's ROE % has ranged from 12.58 to 22.72. According to the industry distribution chart, Wavestone ranks #830 out of 2682 companies in the Software industry, placing it in the top 30.9%.
Is Wavestone's ROE % too high?
Wavestone's current ROE % of 9.50% is 49% below median its 10-year median of 18.50. Over the past 10 years, this metric has ranged from a low of 12.58 to a high of 22.72. The Software industry median ROE % is 4.72. Wavestone's value of 9.50% is 101.3% above this industry median. Based on the distribution chart, Wavestone ranks #830 out of 2682 companies in the Software industry, which is above the industry midpoint. Overall, Wavestone has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Wavestone's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Wavestone ranks #830 out of 2682 companies for ROE %. This puts Wavestone in the upper half of its industry. The industry median ROE % is 4.72. Wavestone's value of 9.50% is 101.3% above this benchmark. Historically, Wavestone's own ROE % has ranged from 12.58 to 22.72 over the past decade. While the company's 10-year median is 18.50 vs. the industry median of 4.72, Wavestone 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 4.72, based on 2,682 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. Wavestone's current ROE % of 9.50% is 101.3% 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 Wavestone and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wavestone's current ROE % is 9.50%, which is 49% below median its own 10-year median of 18.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wavestone stock overvalued right now?
Based on GuruFocus' analysis, Wavestone (FRA:2WSA) is currently considered Significantly Undervalued. The stock's GF Value™ is €68.59, compared to a current price of €37.65 — trading 45.1% below its estimated fair value. The current ROE % is 9.50%, which is 49% below median its 10-year median of 18.50 and 101.3% above the Software industry median of 4.72. Wavestone's overall GF Score™ is 93/100 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 Wavestone (FRA:2WSA), the current ROE % is 9.50% as of Sep. 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 Wavestone (FRA:2WSA) Overvalued in 2026?
Based on GuruFocus' analysis, Wavestone stock appears to be undervalued.
The current stock price of €37.65 is trading 45.1% below its estimated GF Value™ of €68.59.
GuruFocus considers Wavestone to be Significantly Undervalued.
Key valuation signals for FRA:2WSA:
ROE %: 9.50% (49% below median its 10-year median of 18.50)
GF Value™: €68.59 vs. price of €37.65 (45.1% below fair value)
Industry Position: 101.3% above the Software median (#830 of 2682)
No single metric tells the full story. See the FRA:2WSA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wavestone SA is a management and Information Technology consulting firm. The company serves Services, Consumer goods and distribution, Energy and Utilities, Manufacturing, Public sector and International Institutions, and the Transport and Travel sector. Its technologies include IT and Data architecture, Cybersecurity and digital trust, and others. It provides services such as financial risks and purchases, management and financing of innovation, supply chain, and others. Geographically, it generates the majority of its revenue from France.
93GF Score
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