Roivant Sciences (FRA:87S) ROE %: 27.73% (As of Mar. 2026)


FRA:87S Roivant Sciences Ltd FRA:87S
55 GF Score
Price €30.01
GF Value €8.56
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Roivant Sciences ROE %?

Roivant Sciences FRA:87S +6.91% 55 ROE % is 27.73% as of Mar. 2026. GuruFocus rates FRA:87S with a GF Score™ of 55/100 and a GF Value™ of €8.56 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,256 Biotechnology companies, Roivant Sciences ranks better than 72.85% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Roivant Sciences's annualized net income for the quarter that ended in Mar. 2026 was €1,048.36 Mil. Roivant Sciences's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €3,781.06 Mil. Therefore, Roivant Sciences's annualized ROE % for the quarter that ended in Mar. 2026 was 27.73%.

The historical rank and industry rank for Roivant Sciences's ROE % or its related term are showing as below:

FRA:87S' s ROE % Range Over the Past 10 Years
Min: -71.7   Med: -25.76   Max: 122.05
Current: -6.75

During the past 6 years, Roivant Sciences's highest ROE % was 122.05%. The lowest was -71.70%. And the median was -25.76%.

FRA:87S's ROE % is ranked better than
72.85% of 1256 companies
in the Biotechnology industry
Industry Median: -38.26 vs FRA:87S: -6.75

Roivant Sciences  (FRA:87S) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=1048.36/3781.0595
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1048.36 / 8.72)*(8.72 / 4700.239)*(4700.239 / 3781.0595)
=Net Margin %*Asset Turnover*Equity Multiplier
=12022.48 %*0.0019*1.2431
=ROA %*Equity Multiplier
=22.84 %*1.2431
=27.73 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=1048.36/3781.0595
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1048.36 / 1571.176) * (1571.176 / -1228.284) * (-1228.284 / 8.72) * (8.72 / 4700.239) * (4700.239 / 3781.0595)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6672 * -1.2792 * -14085.83 % * 0.0019 * 1.2431
=27.73 %

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.


Roivant Sciences ROE % Related Terms


Roivant Sciences ROE % Historical Data

* Premium members only.

The historical data trend for Roivant Sciences'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.

Roivant Sciences ROE % Chart

Roivant Sciences Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial -50.92 -72.89 121.75 -3.24 -6.28

Roivant Sciences Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.44 -19.12 -10.34 -24.67 27.73

FRA:87S vs INSM, INCY, BNTX: ROE % Comparison

For the Biotechnology subindustry, Roivant Sciences'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.


Roivant Sciences ROE % vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Roivant Sciences's ROE % distribution charts can be found below:

* The bar in red indicates where Roivant Sciences's ROE % falls into.


FRA:87S
55GF Score
Roivant Sciences Ltd FRA:87S
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Roivant Sciences ROE % Calculation

Roivant Sciences's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=-259.302/( (4336.035+3916.175)/ 2 )
=-259.302/4126.105
=-6.28 %

Roivant Sciences's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=1048.36/( (3645.944+3916.175)/ 2 )
=1048.36/3781.0595
=27.73 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 27.73% mean?
Roivant Sciences (FRA:87S) has a ROE % of 27.73% 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 Roivant Sciences and its competitors. According to the industry distribution chart, Roivant Sciences ranks #341 out of 1256 companies in the Biotechnology industry, placing it in the top 27.1%.
Is Roivant Sciences' ROE % too high?
Roivant Sciences' current ROE % is 27.73%. Based on the distribution chart, Roivant Sciences ranks #341 out of 1256 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Roivant Sciences has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roivant Sciences' ROE % compare to INSM and INCY?
According to the Biotechnology industry distribution chart, Roivant Sciences ranks #341 out of 1256 companies for ROE %. This puts Roivant Sciences in the upper 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 Roivant Sciences and its competitors. Roivant Sciences's current ROE % is 27.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roivant Sciences stock overvalued right now?
Based on GuruFocus' analysis, Roivant Sciences (FRA:87S) is currently considered Significantly Overvalued. The stock's GF Value™ is €8.56, compared to a current price of €30.01 — trading 250.6% above its estimated fair value. The current ROE % is 27.73%. Roivant Sciences' overall GF Score™ is 55/100 with 7 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 Roivant Sciences (FRA:87S), the current ROE % is 27.73% 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 Roivant Sciences (FRA:87S) Overvalued in 2026?

Based on GuruFocus' analysis, Roivant Sciences stock appears to be overvalued. The current stock price of €30.01 is trading 250.6% above its estimated GF Value™ of €8.56. GuruFocus considers Roivant Sciences to be Significantly Overvalued.

Key valuation signals for FRA:87S:

  • ROE %: 27.73%
  • GF Value™: €8.56 vs. price of €30.01 (250.6% above fair value)
  • GF Score™: 55/100 with 7 warning signs

No single metric tells the full story. See the FRA:87S stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Roivant Sciences Business Description

Other Exchanges ROIV:USA87S:Germany
Address 50 Broadway, 7th Floor, London, GBR, SW1H 0BD
Roivant Sciences Ltd is a commercial-stage biopharmaceutical company dedicated to improving the delivery of healthcare to patients. It also incubates discovery-stage companies and health technology startups complementary to its biopharmaceutical business. Its drug candidate VTAMA (tapinarof) is a treatment of plaque psoriasis in adult patients and is in its commercial stage. The other drug candidates in their different stages of development are; Batoclimab, IMVT-1402, Brepocitinib, Namilumab, and others.
55GF Score

Get the complete analysis for FRA:87S

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€30.01
Price
€8.56
GF Value