NetSol TechnologiesKAR:NETSOL +2.00%77 ROE % is 31.39% as of Mar. 2026, which is 160% above its 10-year median of 12.07. GuruFocus rates KAR:NETSOL with a GF Score™ of 77/100 and a GF Value™ of ₨177.33 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,681 Software companies, NetSol Technologies ranks better than 86.8% on this metric.
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.
NetSol Technologies ROE % Related Terms
NetSol Technologies ROE % Historical Data
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The historical data trend for NetSol Technologies'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, NetSol Technologies'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.
NetSol Technologies ROE % vs Software Industry
For the Software industry and Technology sector, NetSol Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where NetSol Technologies'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.
NetSol Technologies (KAR:NETSOL) has a ROE % of 31.39% 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 NetSol Technologies and its competitors. This is 160% above median its historical median of 12.07. Over the past decade, NetSol Technologies' ROE % has ranged from 0.51 to 24.93. According to the industry distribution chart, NetSol Technologies ranks #354 out of 2681 companies in the Software industry, placing it in the top 13.2%.
Is NetSol Technologies' ROE % too high?
NetSol Technologies' current ROE % of 31.39% is 160% above median its 10-year median of 12.07. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 24.93. The Software industry median ROE % is 4.71. NetSol Technologies' value of 31.39% is 566.5% above this industry median. Based on the distribution chart, NetSol Technologies ranks #354 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, NetSol Technologies has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NetSol Technologies' ROE % compare to IBM and ACN?
According to the Software industry distribution chart, NetSol Technologies ranks #354 out of 2681 companies for ROE %. This places NetSol Technologies in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 4.71. NetSol Technologies' value of 31.39% is 566.5% above this benchmark. Historically, NetSol Technologies' own ROE % has ranged from 0.51 to 24.93 over the past decade. While the company's 10-year median is 12.07 vs. the industry median of 4.71, NetSol Technologies 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 4.71, based on 2,681 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. NetSol Technologies's current ROE % of 31.39% is 566.5% 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 NetSol Technologies and its competitors. For the Software industry, the median ROE % is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetSol Technologies's current ROE % is 31.39%, which is 160% above median its own 10-year median of 12.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetSol Technologies stock overvalued right now?
Based on GuruFocus' analysis, NetSol Technologies (KAR:NETSOL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨177.33, compared to a current price of ₨134.47 — trading 24.2% below its estimated fair value. The current ROE % is 31.39%, which is 160% above median its 10-year median of 12.07 and 566.5% above the Software industry median of 4.71. NetSol Technologies' overall GF Score™ is 77/100 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 NetSol Technologies (KAR:NETSOL), the current ROE % is 31.39% 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 NetSol Technologies (KAR:NETSOL) Overvalued in 2026?
Based on GuruFocus' analysis, NetSol Technologies stock appears to be undervalued.
The current stock price of ₨134.47 is trading 24.2% below its estimated GF Value™ of ₨177.33.
GuruFocus considers NetSol Technologies to be Modestly Undervalued.
Key valuation signals for KAR:NETSOL:
ROE %: 31.39% (160% above median its 10-year median of 12.07)
GF Value™: ₨177.33 vs. price of ₨134.47 (24.2% below fair value)
Industry Position: 566.5% above the Software median (#354 of 2681)
No single metric tells the full story. See the KAR:NETSOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetSol Technologies Ltd provides Information Technology services & enterprise solutions. It provides solutions for leasing and finance, healthcare technology, insurance, and e-Procurement. Its products include Enterprise Solutions, Business Intelligence, IT Consulting & Business Process Reengineering, Technology & Business Process Outsourcing, Application Development & Maintenance, Cloud Services. Its operating segments are product-based solutions and ancillary services, professional services, and business process outsourcing. Geographically, it operates in Pakistan, Asia Pacific, Australia & the USA, the UK, and other countries.
77GF Score
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