K Wave MediaKWM -9.26%6 ROE % is -550.50% as of Dec. 2025. GuruFocus rates KWM with a GF Score™ of 6/100. The stock has 3 warning signs investors should review. Among 951 Media - Diversified companies, K Wave Media ranks worse than 99.26% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. K Wave Media's annualized net income for the quarter that ended in Dec. 2025 was $-227.10 Mil. K Wave Media's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $41.25 Mil. Therefore, K Wave Media's annualized ROE % for the quarter that ended in Dec. 2025 was -550.50%.
The historical rank and industry rank for K Wave Media's ROE % or its related term are showing as below:
KWM'
s ROE % Range Over the Past 10 Years
Min: -482.14 Med: 5.57 Max: 40.49
Current: -482.14
During the past 3 years, K Wave Media's highest ROE % was 40.49%. The lowest was -482.14%. And the median was 5.57%.
KWM's ROE % is ranked worse than 99.26% of 951
companies
in the Media - Diversified industry
Industry Median: 2.47
vs KWM: -482.14
K Wave Media (NAS:KWM) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.
K Wave Media ROE % Related Terms
K Wave Media ROE % Historical Data
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The historical data trend for K Wave Media'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 Entertainment subindustry, K Wave Media'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.
K Wave Media ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, K Wave Media's ROE % distribution charts can be found below:
* The bar in red indicates where K Wave Media'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
K Wave Media (KWM) has a ROE % of -550.50% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on K Wave Media and its competitors. According to the industry distribution chart, K Wave Media ranks #944 out of 951 companies in the Media - Diversified industry, placing it in the top 99.3%.
Is K Wave Media's ROE % too high?
K Wave Media's current ROE % is -550.50%. Based on the distribution chart, K Wave Media ranks #944 out of 951 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, K Wave Media has a GF Score™ of 6/100, reflecting its overall financial health beyond just this single metric.
How does K Wave Media's ROE % compare to CPOP and APHP?
According to the Media - Diversified industry distribution chart, K Wave Media ranks #944 out of 951 companies for ROE %. This places K Wave Media in the lower half of its industry. The industry median ROE % is 2.47. 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 951 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 K Wave Media and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K Wave Media's current ROE % is -550.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is K Wave Media stock overvalued right now?
K Wave Media (KWM) has a current ROE % of -550.50%. The current ROE % is -550.50%. K Wave Media's overall GF Score™ is 6/100 with 3 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 K Wave Media (KWM), the current ROE % is -550.50% as of Dec. 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.
K Wave Media Ltd is engaged in the IP content business, which focuses on the creation, investment, management, licensing, and monetization of intellectual property (IP) content such as TV programs, movies, dramas, and music. Its operations are reported in four segments: content merchandising, food and beverages, content production, and content investment. The majority of the company's revenue is derived from the content merchandising segment, which produces and distributes specialized video merchandise for K-pop artists timed to coincide with their activities, such as concerts, album launches, and fan events. Geographically, the company generates maximum revenue from Korea, and the rest from the USA, Germany, the UK, France, Japan, and other markets.
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