The historical rank and industry rank for Revolution Medicines's ROE % or its related term are showing as below:
FRA:42Z'
s ROE % Range Over the Past 10 Years
Min: -686.98 Med: -38.25 Max: -29.33
Current: -79.09
During the past 9 years, Revolution Medicines's highest ROE % was -29.33%. The lowest was -686.98%. And the median was -38.25%.
FRA:42Z's ROE % is ranked worse than 69.09% of 1252
companies
in the Biotechnology industry
Industry Median: -38.145
vs FRA:42Z: -79.09
Revolution Medicines (FRA:42Z) 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.
* 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 Biotechnology subindustry, Revolution Medicines'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.
Revolution Medicines ROE % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Revolution Medicines's ROE % distribution charts can be found below:
* The bar in red indicates where Revolution Medicines'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Revolution Medicines (FRA:42Z) has a ROE % of -116.72% 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 Revolution Medicines and its competitors. According to the industry distribution chart, Revolution Medicines ranks #865 out of 1252 companies in the Biotechnology industry, placing it in the top 69.1%.
Is Revolution Medicines' ROE % too high?
Revolution Medicines' current ROE % is -116.72%. Based on the distribution chart, Revolution Medicines ranks #865 out of 1252 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Revolution Medicines has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Revolution Medicines' ROE % compare to ALNY and ONC?
According to the Biotechnology industry distribution chart, Revolution Medicines ranks #865 out of 1252 companies for ROE %. This places Revolution Medicines in the lower half of its industry. 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 Biotechnology company?
A good ROE % depends on the Biotechnology industry context. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Revolution Medicines and its competitors. Revolution Medicines's current ROE % is -116.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Revolution Medicines stock overvalued right now?
Based on GuruFocus' analysis, Revolution Medicines (FRA:42Z) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.39, compared to a current price of €159.50 — trading 40797.4% above its estimated fair value. The current ROE % is -116.72%. Revolution Medicines' overall GF Score™ is 36/100 with 4 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 Revolution Medicines (FRA:42Z), the current ROE % is -116.72% 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 Revolution Medicines (FRA:42Z) Overvalued in 2026?
Based on GuruFocus' analysis, Revolution Medicines stock appears to be overvalued.
The current stock price of €159.50 is trading 40797.4% above its estimated GF Value™ of €0.39.
GuruFocus considers Revolution Medicines to be Significantly Overvalued.
Key valuation signals for FRA:42Z:
ROE %: -116.72%
GF Value™: €0.39 vs. price of €159.50 (40797.4% above fair value)
No single metric tells the full story. See the FRA:42Z stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Revolution Medicines Inc is a clinical-stage precision oncology company developing novel targeted therapies for RAS-addicted cancers. The Company possesses structure-based drug discovery capabilities built upon chemical biology and cancer pharmacology know-how and proprietary technologies that enable the creation of small molecules tailored to unconventional binding sites. Its research and development pipeline comprises inhibitors that bind directly to RAS variants (RAS(ON) Inhibitors), designed to be used as monotherapy, in combination with other RAS(ON) Inhibitors and/or other therapeutic agents.
36GF Score
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