Telstra GroupFRA:5KB -6.21%80 ROE % is 16.56% as of Dec. 2025, which is 21% above its 10-year median of 13.68. GuruFocus rates FRA:5KB with a GF Score™ of 80/100 and a GF Value™ of €13.10. The stock has 6 warning signs investors should review. Among 349 Telecommunication Services companies, Telstra Group ranks better than 72.21% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Telstra Group's annualized net income for the quarter that ended in Dec. 2025 was €1,276 Mil. Telstra Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €7,705 Mil. Therefore, Telstra Group's annualized ROE % for the quarter that ended in Dec. 2025 was 16.56%.
The historical rank and industry rank for Telstra Group's ROE % or its related term are showing as below:
FRA:5KB'
s ROE % Range Over the Past 10 Years
Min: 10.7 Med: 13.68 Max: 38.57
Current: 16.19
During the past 13 years, Telstra Group's highest ROE % was 38.57%. The lowest was 10.70%. And the median was 13.68%.
FRA:5KB's ROE % is ranked better than 72.21% of 349
companies
in the Telecommunication Services industry
Industry Median: 7.41
vs FRA:5KB: 16.19
Telstra Group (FRA:5KB) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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.
Telstra Group ROE % Related Terms
Telstra Group ROE % Historical Data
* Premium members only.
The historical data trend for Telstra Group'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 Telecom Services subindustry, Telstra Group'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.
Telstra Group ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's ROE % distribution charts can be found below:
* The bar in red indicates where Telstra Group'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Telstra Group (FRA:5KB) has a ROE % of 16.56% 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 Telstra Group and its competitors. This is 21% above median its historical median of 13.68. Over the past decade, Telstra Group's ROE % has ranged from 10.70 to 38.57. According to the industry distribution chart, Telstra Group ranks #97 out of 349 companies in the Telecommunication Services industry, placing it in the top 27.8%.
Is Telstra Group's ROE % too high?
Telstra Group's current ROE % of 16.56% is 21% above median its 10-year median of 13.68. Over the past 10 years, this metric has ranged from a low of 10.70 to a high of 38.57. The Telecommunication Services industry median ROE % is 7.41. Telstra Group's value of 16.56% is 123.5% above this industry median. Based on the distribution chart, Telstra Group ranks #97 out of 349 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #97 out of 349 companies for ROE %. This puts Telstra Group in the upper half of its industry. The industry median ROE % is 7.41. Telstra Group's value of 16.56% is 123.5% above this benchmark. Historically, Telstra Group's own ROE % has ranged from 10.70 to 38.57 over the past decade. While the company's 10-year median is 13.68 vs. the industry median of 7.41, Telstra Group 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 Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 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. Telstra Group's current ROE % of 16.56% is 123.5% 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 Telstra Group and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telstra Group's current ROE % is 16.56%, which is 21% above median its own 10-year median of 13.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Telstra Group (FRA:5KB) has a current ROE % of 16.56%. The stock's GF Value™ is €13.10, compared to a current price of €15.10 — trading 15.3% above its estimated fair value. The current ROE % is 16.56%, which is 21% above median its 10-year median of 13.68 and 123.5% above the Telecommunication Services industry median of 7.41. Telstra Group's overall GF Score™ is 80/100 with 6 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 Telstra Group (FRA:5KB), the current ROE % is 16.56% 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 Telstra Group (FRA:5KB) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of €15.10 is trading 15.3% above its estimated GF Value™ of €13.10.
Key valuation signals for FRA:5KB:
ROE %: 16.56% (21% above median its 10-year median of 13.68)
GF Value™: €13.10 vs. price of €15.10 (15.3% above fair value)
Industry Position: 123.5% above the Telecommunication Services median (#97 of 349)
No single metric tells the full story. See the FRA:5KB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
80GF Score
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