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 (Jun. 2020) net income data. The Revenue data used here is four times the quarterly (Jun. 2020) 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.
* 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 Capital Markets subindustry, PT Polaris Investama Tbk'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.
PT Polaris Investama Tbk ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, PT Polaris Investama Tbk's ROE % distribution charts can be found below:
* The bar in red indicates where PT Polaris Investama Tbk'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 (Jun. 2020) net income data.
ROE % is displayed in the 30-year financial page.
PT Polaris Investama Tbk (ISX:PLAS) has a ROE % of -2.27% as of Jun. 2020. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PT Polaris Investama Tbk and its competitors.
Is PT Polaris Investama Tbk's ROE % too high?
PT Polaris Investama Tbk's current ROE % is -2.27%. Overall, PT Polaris Investama Tbk has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PT Polaris Investama Tbk's ROE % compare to competitors?
PT Polaris Investama Tbk's ROE % of -2.27% can be compared against companies in the Capital Markets industry. The industry median ROE % is 6.00. 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.00, based on 791 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. 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 PT Polaris Investama Tbk and its competitors. For the Capital Markets industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Polaris Investama Tbk's current ROE % is -2.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Polaris Investama Tbk stock overvalued right now?
PT Polaris Investama Tbk (ISX:PLAS) has a current ROE % of -2.27%. The current ROE % is -2.27%. PT Polaris Investama Tbk's overall GF Score™ is 4/100. 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 PT Polaris Investama Tbk (ISX:PLAS), the current ROE % is -2.27% as of Jun. 2020. 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.
PT Polaris Investama Tbk operates in capital markets industry in Indonesia. The company is an investment company operates as a dealer broker and underwriter.
4GF Score
Get the complete analysis for ISX:PLAS
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ISX:PLAS has been successfully added to your 
