ITCITCTY 60 ROE % is 29.72% as of Mar. 2026, which is 20% above its 10-year median of 24.72. GuruFocus rates ITCTY with a GF Score™ of 60/100 and a GF Value™ of $6.07 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 45 Tobacco Products companies, ITC ranks better than 66.67% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ITC's annualized net income for the quarter that ended in Mar. 2026 was $2,322 Mil. ITC's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $7,812 Mil. Therefore, ITC's annualized ROE % for the quarter that ended in Mar. 2026 was 29.72%.
The historical rank and industry rank for ITC's ROE % or its related term are showing as below:
ITCTY'
s ROE % Range Over the Past 10 Years
Min: 20.95 Med: 24.72 Max: 48.08
Current: 29.06
During the past 13 years, ITC's highest ROE % was 48.08%. The lowest was 20.95%. And the median was 24.72%.
ITCTY's ROE % is ranked better than 66.67% of 45
companies
in the Tobacco Products industry
Industry Median: 16.13
vs ITCTY: 29.06
ITC (OTCPK:ITCTY) 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.
ITC ROE % Related Terms
ITC ROE % Historical Data
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The historical data trend for ITC'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 Tobacco subindustry, ITC'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.
ITC ROE % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, ITC's ROE % distribution charts can be found below:
* The bar in red indicates where ITC'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.
ITC (ITCTY) has a ROE % of 29.72% 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 ITC and its competitors. This is 20% above median its historical median of 24.72. Over the past decade, ITC's ROE % has ranged from 20.95 to 48.08. According to the industry distribution chart, ITC ranks #15 out of 45 companies in the Tobacco Products industry, placing it in the top 33.3%.
Is ITC's ROE % too high?
ITC's current ROE % of 29.72% is 20% above median its 10-year median of 24.72. Over the past 10 years, this metric has ranged from a low of 20.95 to a high of 48.08. The Tobacco Products industry median ROE % is 16.13. ITC's value of 29.72% is 84.3% above this industry median. Based on the distribution chart, ITC ranks #15 out of 45 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, ITC has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ITC's ROE % compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #15 out of 45 companies for ROE %. This puts ITC in the upper half of its industry. The industry median ROE % is 16.13. ITC's value of 29.72% is 84.3% above this benchmark. Historically, ITC's own ROE % has ranged from 20.95 to 48.08 over the past decade. While the company's 10-year median is 24.72 vs. the industry median of 16.13, ITC 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 Tobacco Products company?
The median ROE % among Tobacco Products companies is 16.13, based on 45 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. ITC's current ROE % of 29.72% is 84.3% 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 ITC and its competitors. For the Tobacco Products industry, the median ROE % is 16.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current ROE % is 29.72%, which is 20% above median its own 10-year median of 24.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
Based on GuruFocus' analysis, ITC (ITCTY) is currently considered Significantly Undervalued. The stock's GF Value™ is $6.07, compared to a current price of $3.81 — trading 37.2% below its estimated fair value. The current ROE % is 29.72%, which is 20% above median its 10-year median of 24.72 and 84.3% above the Tobacco Products industry median of 16.13. ITC's overall GF Score™ is 60/100 with 1 warning sign 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 ITC (ITCTY), the current ROE % is 29.72% 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 ITC (ITCTY) Overvalued in 2026?
Based on GuruFocus' analysis, ITC stock appears to be undervalued.
The current stock price of $3.81 is trading 37.2% below its estimated GF Value™ of $6.07.
GuruFocus considers ITC to be Significantly Undervalued.
Key valuation signals for ITCTY:
ROE %: 29.72% (20% above median its 10-year median of 24.72)
GF Value™: $6.07 vs. price of $3.81 (37.2% below fair value)
Industry Position: 84.3% above the Tobacco Products median (#15 of 45)
No single metric tells the full story. See the ITCTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
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