Tieto OyjLTS:0KG0 +0.62%68 ROE % is 22.31% as of Mar. 2026, which is 112% above its 10-year median of 10.50. GuruFocus rates LTS:0KG0 with a GF Score™ of 68/100 and a GF Value™ of €14.71 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,679 Software companies, Tieto Oyj ranks worse than 61.96% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tieto Oyj's annualized net income for the quarter that ended in Mar. 2026 was €240 Mil. Tieto Oyj's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €1,076 Mil. Therefore, Tieto Oyj's annualized ROE % for the quarter that ended in Mar. 2026 was 22.31%.
The historical rank and industry rank for Tieto Oyj's ROE % or its related term are showing as below:
LTS:0KG0'
s ROE % Range Over the Past 10 Years
Min: -11.8 Med: 10.5 Max: 25.71
Current: -0.01
During the past 13 years, Tieto Oyj's highest ROE % was 25.71%. The lowest was -11.80%. And the median was 10.50%.
LTS:0KG0's ROE % is ranked worse than 61.96% of 2679
companies
in the Software industry
Industry Median: 4.69
vs LTS:0KG0: -0.01
Tieto Oyj (LTS:0KG0) 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.
Tieto Oyj ROE % Related Terms
Tieto Oyj ROE % Historical Data
* Premium members only.
The historical data trend for Tieto Oyj'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, Tieto Oyj'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.
Tieto Oyj ROE % vs Software Industry
For the Software industry and Technology sector, Tieto Oyj's ROE % distribution charts can be found below:
* The bar in red indicates where Tieto Oyj'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.
Tieto Oyj (LTS:0KG0) has a ROE % of 22.31% 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 Tieto Oyj and its competitors. This is 112% above median its historical median of 10.50. According to the industry distribution chart, Tieto Oyj ranks #1660 out of 2679 companies in the Software industry, placing it in the top 62%.
Is Tieto Oyj's ROE % too high?
Tieto Oyj's current ROE % of 22.31% is 112% above median its 10-year median of 10.50. The Software industry median ROE % is 4.69. Tieto Oyj's value of 22.31% is 375.7% above this industry median. Based on the distribution chart, Tieto Oyj ranks #1660 out of 2679 companies in the Software industry, which is below the industry midpoint. Overall, Tieto Oyj has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tieto Oyj's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Tieto Oyj ranks #1660 out of 2679 companies for ROE %. This places Tieto Oyj in the lower half of its industry. The industry median ROE % is 4.69. Tieto Oyj's value of 22.31% is 375.7% above this benchmark. While the company's 10-year median is 10.50 vs. the industry median of 4.69, Tieto Oyj 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 4.69, based on 2,679 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. Tieto Oyj's current ROE % of 22.31% is 375.7% 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 Tieto Oyj and its competitors. For the Software industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tieto Oyj's current ROE % is 22.31%, which is 112% above median its own 10-year median of 10.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tieto Oyj stock overvalued right now?
Based on GuruFocus' analysis, Tieto Oyj (LTS:0KG0) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.71, compared to a current price of €17.76 — trading 20.7% above its estimated fair value. The current ROE % is 22.31%, which is 112% above median its 10-year median of 10.50 and 375.7% above the Software industry median of 4.69. Tieto Oyj's overall GF Score™ is 68/100 with 4 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 Tieto Oyj (LTS:0KG0), the current ROE % is 22.31% 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 Tieto Oyj (LTS:0KG0) Overvalued in 2026?
Based on GuruFocus' analysis, Tieto Oyj stock appears to be overvalued.
The current stock price of €17.76 is trading 20.7% above its estimated GF Value™ of €14.71.
GuruFocus considers Tieto Oyj to be Modestly Overvalued.
Key valuation signals for LTS:0KG0:
ROE %: 22.31% (112% above median its 10-year median of 10.50)
GF Value™: €14.71 vs. price of €17.76 (20.7% above fair value)
Industry Position: 375.7% above the Software median (#1660 of 2679)
No single metric tells the full story. See the LTS:0KG0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tieto Oyj is a software and technology consulting company. The company provides software and digital engineering services to customers across multiple industries. Its operations include specialized software businesses such as Tieto Caretech, Tieto Banktech, and Tieto Indtech, as well as a technology consulting business. The company offers services in areas including software development, design, cloud, and artificial intelligence.
68GF Score
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