Basf SEHAM:BAS +1.13%71 ROE % is 10.99% as of Mar. 2026, which is 25% above its 10-year median of 8.82. GuruFocus rates HAM:BAS with a GF Score™ of 71/100 and a GF Value™ of €42.69 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,590 Chemicals companies, Basf SE ranks worse than 50.44% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Basf SE's annualized net income for the quarter that ended in Mar. 2026 was €3,708 Mil. Basf SE's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €33,739 Mil. Therefore, Basf SE's annualized ROE % for the quarter that ended in Mar. 2026 was 10.99%.
The historical rank and industry rank for Basf SE's ROE % or its related term are showing as below:
HAM:BAS'
s ROE % Range Over the Past 10 Years
Min: -2.82 Med: 8.82 Max: 22
Current: 5.15
During the past 13 years, Basf SE's highest ROE % was 22.00%. The lowest was -2.82%. And the median was 8.82%.
HAM:BAS's ROE % is ranked worse than 50.44% of 1590
companies
in the Chemicals industry
Industry Median: 5.195
vs HAM:BAS: 5.15
Basf SE (HAM:BAS) 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.
Basf SE ROE % Related Terms
Basf SE ROE % Historical Data
* Premium members only.
The historical data trend for Basf SE'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 Chemicals subindustry, Basf SE'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.
Basf SE ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Basf SE's ROE % distribution charts can be found below:
* The bar in red indicates where Basf SE'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.
Basf SE (HAM:BAS) has a ROE % of 10.99% 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 Basf SE and its competitors. This is 25% above median its historical median of 8.82. According to the industry distribution chart, Basf SE ranks #802 out of 1590 companies in the Chemicals industry, placing it in the top 50.4%.
Is Basf SE's ROE % too high?
Basf SE's current ROE % of 10.99% is 25% above median its 10-year median of 8.82. The Chemicals industry median ROE % is 5.20. Basf SE's value of 10.99% is 111.5% above this industry median. Based on the distribution chart, Basf SE ranks #802 out of 1590 companies in the Chemicals industry, which is below the industry midpoint. Overall, Basf SE has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Basf SE's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Basf SE ranks #802 out of 1590 companies for ROE %. This places Basf SE in the lower half of its industry. The industry median ROE % is 5.20. Basf SE's value of 10.99% is 111.5% above this benchmark. While the company's 10-year median is 8.82 vs. the industry median of 5.20, Basf SE 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 Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,590 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. Basf SE's current ROE % of 10.99% is 111.5% 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 Basf SE and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Basf SE's current ROE % is 10.99%, which is 25% above median its own 10-year median of 8.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Basf SE stock overvalued right now?
Based on GuruFocus' analysis, Basf SE (HAM:BAS) is currently considered Modestly Overvalued. The stock's GF Value™ is €42.69, compared to a current price of €49.02 — trading 14.8% above its estimated fair value. The current ROE % is 10.99%, which is 25% above median its 10-year median of 8.82 and 111.5% above the Chemicals industry median of 5.20. Basf SE's overall GF Score™ is 71/100 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 Basf SE (HAM:BAS), the current ROE % is 10.99% 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 Basf SE (HAM:BAS) Overvalued in 2026?
Based on GuruFocus' analysis, Basf SE stock appears to be overvalued.
The current stock price of €49.02 is trading 14.8% above its estimated GF Value™ of €42.69.
GuruFocus considers Basf SE to be Modestly Overvalued.
Key valuation signals for HAM:BAS:
ROE %: 10.99% (25% above median its 10-year median of 8.82)
GF Value™: €42.69 vs. price of €49.02 (14.8% above fair value)
Industry Position: 111.5% above the Chemicals median (#802 of 1590)
No single metric tells the full story. See the HAM:BAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BASF is one of the world's leading chemical companies. It's headquartered in Germany near the Rhine River, which helps with logistics-related savings. Founded in 1865, it produces a vast array of chemicals, plastics, resins, and agricultural solutions. While the company serves multiple industries, it most prominently serves the automotive, agricultural, construction, and pharmaceutical industries. BASF is a first mover in the energy transition and aims to rapidly expand its recycled and bio-based product portfolio.
71GF Score
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