The historical rank and industry rank for GBS Software AG's ROE % or its related term are showing as below:
FRA:INW'
s ROE % Range Over the Past 10 Years
Min: -29.51 Med: -11.07 Max: 90.54
Current: 18.91
During the past 13 years, GBS Software AG's highest ROE % was 90.54%. The lowest was -29.51%. And the median was -11.07%.
FRA:INW's ROE % is ranked better than 80.8% of 2682
companies
in the Software industry
Industry Median: 4.72
vs FRA:INW: 18.91
GBS Software AG (FRA:INW) 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.
GBS Software AG ROE % Related Terms
GBS Software AG ROE % Historical Data
* Premium members only.
The historical data trend for GBS Software AG'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 - Infrastructure subindustry, GBS Software AG'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.
GBS Software AG ROE % vs Software Industry
For the Software industry and Technology sector, GBS Software AG's ROE % distribution charts can be found below:
* The bar in red indicates where GBS Software AG'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.
GBS Software AG (FRA:INW) has a ROE % of 41.76% 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 GBS Software AG and its competitors. According to the industry distribution chart, GBS Software AG ranks #515 out of 2682 companies in the Software industry, placing it in the top 19.2%.
Is GBS Software AG's ROE % too high?
GBS Software AG's current ROE % is 41.76%. The Software industry median ROE % is 4.72. GBS Software AG's value of 41.76% is 784.7% above this industry median. Based on the distribution chart, GBS Software AG ranks #515 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GBS Software AG has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GBS Software AG's ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, GBS Software AG ranks #515 out of 2682 companies for ROE %. This places GBS Software AG in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. GBS Software AG's value of 41.76% is 784.7% above this benchmark. 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. GBS Software AG's current ROE % of 41.76% is 784.7% 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 GBS Software AG 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. GBS Software AG's current ROE % is 41.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GBS Software AG stock overvalued right now?
Based on GuruFocus' analysis, GBS Software AG (FRA:INW) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.16, compared to a current price of €4.00 — trading 244.8% above its estimated fair value. The current ROE % is 41.76% and 784.7% above the Software industry median of 4.72. GBS Software AG's overall GF Score™ is 49/100 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 GBS Software AG (FRA:INW), the current ROE % is 41.76% 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 GBS Software AG (FRA:INW) Overvalued in 2026?
Based on GuruFocus' analysis, GBS Software AG stock appears to be overvalued.
The current stock price of €4.00 is trading 244.8% above its estimated GF Value™ of €1.16.
GuruFocus considers GBS Software AG to be Significantly Overvalued.
Key valuation signals for FRA:INW:
ROE %: 41.76%
GF Value™: €1.16 vs. price of €4.00 (244.8% above fair value)
Industry Position: 784.7% above the Software median (#515 of 2682)
No single metric tells the full story. See the FRA:INW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GBS Software AG provides solutions and services in the fields of messaging security and workflow for the IBM and Microsoft collaboration platforms. It acts as a providers of email security and workflow management solutions. The company operates in Europe, North America, and Asia. It provides retirement management solutions as well. The group provides the following services: Domino Administration, XPages migration, Mobility, Consulting, and Training and mentoring.
49GF Score
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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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