AMTD DigitalHKD +0.63%64 ROE % is 18.74% as of Oct. 2025, which is 1% above its 10-year median of 18.53. GuruFocus rates HKD with a GF Score™ of 64/100 and a GF Value™ of $4.76 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 2,682 Software companies, AMTD Digital ranks better than 88.03% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. AMTD Digital's annualized net income for the quarter that ended in Oct. 2025 was $55.27 Mil. AMTD Digital's average Total Stockholders Equity over the quarter that ended in Oct. 2025 was $294.99 Mil. Therefore, AMTD Digital's annualized ROE % for the quarter that ended in Oct. 2025 was 18.74%.
The historical rank and industry rank for AMTD Digital's ROE % or its related term are showing as below:
HKD'
s ROE % Range Over the Past 10 Years
Min: 7.21 Med: 18.53 Max: 38.49
Current: 26.97
During the past 7 years, AMTD Digital's highest ROE % was 38.49%. The lowest was 7.21%. And the median was 18.53%.
HKD's ROE % is ranked better than 88.03% of 2682
companies
in the Software industry
Industry Median: 4.72
vs HKD: 26.97
AMTD Digital (NYSE:HKD) 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 (Oct. 2025) net income data. The Revenue data used here is two times the semi-annual (Oct. 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.
AMTD Digital ROE % Related Terms
AMTD Digital ROE % Historical Data
* Premium members only.
The historical data trend for AMTD Digital'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 - Application subindustry, AMTD Digital'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.
AMTD Digital ROE % vs Software Industry
For the Software industry and Technology sector, AMTD Digital's ROE % distribution charts can be found below:
* The bar in red indicates where AMTD Digital'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 (Oct. 2025) net income data.
ROE % is displayed in the 30-year financial page.
AMTD Digital (HKD) has a ROE % of 18.74% as of Oct. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on AMTD Digital and its competitors. This is near median its historical median of 18.53. Over the past decade, AMTD Digital's ROE % has ranged from 7.21 to 38.49. According to the industry distribution chart, AMTD Digital ranks #321 out of 2682 companies in the Software industry, placing it in the top 12%.
Is AMTD Digital's ROE % too high?
AMTD Digital's current ROE % of 18.74% is near median its 10-year median of 18.53. Over the past 10 years, this metric has ranged from a low of 7.21 to a high of 38.49. The Software industry median ROE % is 4.72. AMTD Digital's value of 18.74% is 297% above this industry median. Based on the distribution chart, AMTD Digital ranks #321 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, AMTD Digital has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AMTD Digital's ROE % compare to CRNC and PUBM?
According to the Software industry distribution chart, AMTD Digital ranks #321 out of 2682 companies for ROE %. This places AMTD Digital in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. AMTD Digital's value of 18.74% is 297% above this benchmark. Historically, AMTD Digital's own ROE % has ranged from 7.21 to 38.49 over the past decade. While the company's 10-year median is 18.53 vs. the industry median of 4.72, AMTD Digital 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. AMTD Digital's current ROE % of 18.74% is 297% 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 AMTD Digital 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. AMTD Digital's current ROE % is 18.74%, which is near median its own 10-year median of 18.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AMTD Digital stock overvalued right now?
Based on GuruFocus' analysis, AMTD Digital (HKD) is currently considered Possible Value Trap. The stock's GF Value™ is $4.76, compared to a current price of $1.57 — trading 67% below its estimated fair value. The current ROE % is 18.74%, which is near median its 10-year median of 18.53 and 297% above the Software industry median of 4.72. AMTD Digital's overall GF Score™ is 64/100 with 8 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 AMTD Digital (HKD), the current ROE % is 18.74% as of Oct. 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 AMTD Digital (HKD) Overvalued in 2026?
Based on GuruFocus' analysis, AMTD Digital stock appears to be undervalued.
The current stock price of $1.57 is trading 67% below its estimated GF Value™ of $4.76.
GuruFocus considers AMTD Digital to be Possible Value Trap.
Key valuation signals for HKD:
ROE %: 18.74% (near median its 10-year median of 18.53)
GF Value™: $4.76 vs. price of $1.57 (67% below fair value)
Industry Position: 297% above the Software median (#321 of 2682)
No single metric tells the full story. See the HKD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AMTD Digital Inc along with its subsidiaries, is mainly involved in the provision of digital solutions services. Its reportable segments are digital solutions services segment; hotel operations, hospitality and VIP services segment; media and entertainment services segment; and Strategic investments. The company generates maximum revenue from Digital solutions services segment, which provides its institutional and corporate clients with exclusive, paid access to enhance their investor communication, investor relations and corporate communication to potentially maximize their valuation, as well as providing digital solution services. Geographically, the company generates revenue from China, Hong Kong, Europe, Americas and Southeast Asia.
64GF Score
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