Prevas ABFRA:J89 -1.05%60 ROE % is 12.49% as of Mar. 2026, which is 25% below its 10-year median of 16.68. GuruFocus rates FRA:J89 with a GF Score™ of 60/100 and a GF Value™ of €10.17 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,682 Software companies, Prevas AB ranks better than 65.06% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Prevas AB's annualized net income for the quarter that ended in Mar. 2026 was €7.5 Mil. Prevas AB's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €60.2 Mil. Therefore, Prevas AB's annualized ROE % for the quarter that ended in Mar. 2026 was 12.49%.
The historical rank and industry rank for Prevas AB's ROE % or its related term are showing as below:
FRA:J89'
s ROE % Range Over the Past 10 Years
Min: -5.28 Med: 16.68 Max: 29.42
Current: 10.72
During the past 13 years, Prevas AB's highest ROE % was 29.42%. The lowest was -5.28%. And the median was 16.68%.
FRA:J89's ROE % is ranked better than 65.06% of 2682
companies
in the Software industry
Industry Median: 4.72
vs FRA:J89: 10.72
Prevas AB (FRA:J89) 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.
Prevas AB ROE % Related Terms
Prevas AB ROE % Historical Data
* Premium members only.
The historical data trend for Prevas AB'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, Prevas AB'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.
Prevas AB ROE % vs Software Industry
For the Software industry and Technology sector, Prevas AB's ROE % distribution charts can be found below:
* The bar in red indicates where Prevas AB'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.
Prevas AB (FRA:J89) has a ROE % of 12.49% 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 Prevas AB and its competitors. This is 25% below median its historical median of 16.68. According to the industry distribution chart, Prevas AB ranks #937 out of 2682 companies in the Software industry, placing it in the top 34.9%.
Is Prevas AB's ROE % too high?
Prevas AB's current ROE % of 12.49% is 25% below median its 10-year median of 16.68. The Software industry median ROE % is 4.72. Prevas AB's value of 12.49% is 164.6% above this industry median. Based on the distribution chart, Prevas AB ranks #937 out of 2682 companies in the Software industry, which is above the industry midpoint. Overall, Prevas AB has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prevas AB's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Prevas AB ranks #937 out of 2682 companies for ROE %. This puts Prevas AB in the upper half of its industry. The industry median ROE % is 4.72. Prevas AB's value of 12.49% is 164.6% above this benchmark. While the company's 10-year median is 16.68 vs. the industry median of 4.72, Prevas AB 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. Prevas AB's current ROE % of 12.49% is 164.6% 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 Prevas AB 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. Prevas AB's current ROE % is 12.49%, which is 25% below median its own 10-year median of 16.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prevas AB stock overvalued right now?
Based on GuruFocus' analysis, Prevas AB (FRA:J89) is currently considered Significantly Undervalued. The stock's GF Value™ is €10.17, compared to a current price of €6.60 — trading 35.1% below its estimated fair value. The current ROE % is 12.49%, which is 25% below median its 10-year median of 16.68 and 164.6% above the Software industry median of 4.72. Prevas AB's overall GF Score™ is 60/100 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 Prevas AB (FRA:J89), the current ROE % is 12.49% 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 Prevas AB (FRA:J89) Overvalued in 2026?
Based on GuruFocus' analysis, Prevas AB stock appears to be undervalued.
The current stock price of €6.60 is trading 35.1% below its estimated GF Value™ of €10.17.
GuruFocus considers Prevas AB to be Significantly Undervalued.
Key valuation signals for FRA:J89:
ROE %: 12.49% (25% below median its 10-year median of 16.68)
GF Value™: €10.17 vs. price of €6.60 (35.1% below fair value)
Industry Position: 164.6% above the Software median (#937 of 2682)
No single metric tells the full story. See the FRA:J89 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prevas AB is a Sweden-based information technology (IT) company that offers solutions, services, and products to customers who develop products with high IT content and need to streamline and automate their operations. The company's products are segmented as automotive, products and units, steel and minerals, defense, energy, life science, manufacturing, engineering, and telecom industries. The company has two geographical segments, namely Sweden, Finland, Denmark, and Other. It derives maximum revenue from Sweden.
60GF Score
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