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Arihant Academy (NSE:ARIHANTACA) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Arihant Academy ROE % Related Terms
Arihant Academy ROE % Historical Data
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The historical data trend for Arihant Academy'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.
NSE:ARIHANTACA vs EDU, TAL, LAUR: ROE % Comparison
For the Education & Training Services subindustry, Arihant Academy'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.
Arihant Academy ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Arihant Academy's ROE % distribution charts can be found below:
* The bar in red indicates where Arihant Academy'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. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Arihant Academy (NSE:ARIHANTACA) has a ROE % of 24.47% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Arihant Academy and its competitors. This is near median its historical median of 23.62. Over the past decade, Arihant Academy's ROE % has ranged from 7.58 to 51.24. According to the industry distribution chart, Arihant Academy ranks #30 out of 261 companies in the Education industry, placing it in the top 11.5%.
Is Arihant Academy's ROE % too high?
Arihant Academy's current ROE % of 24.47% is near median its 10-year median of 23.62. Over the past 10 years, this metric has ranged from a low of 7.58 to a high of 51.24. The Education industry median ROE % is 7.51. Arihant Academy's value of 24.47% is 225.8% above this industry median. Based on the distribution chart, Arihant Academy ranks #30 out of 261 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Arihant Academy has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arihant Academy's ROE % compare to EDU and TAL?
According to the Education industry distribution chart, Arihant Academy ranks #30 out of 261 companies for ROE %. This places Arihant Academy in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 7.51. Arihant Academy's value of 24.47% is 225.8% above this benchmark. Historically, Arihant Academy's own ROE % has ranged from 7.58 to 51.24 over the past decade. While the company's 10-year median is 23.62 vs. the industry median of 7.51, Arihant Academy 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 an Education company?
The median ROE % among Education companies is 7.51, based on 261 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. Arihant Academy's current ROE % of 24.47% is 225.8% 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 Arihant Academy and its competitors. For the Education industry, the median ROE % is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arihant Academy's current ROE % is 24.47%, which is near median its own 10-year median of 23.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arihant Academy stock overvalued right now?
Based on GuruFocus' analysis, Arihant Academy (NSE:ARIHANTACA) is currently considered Fairly Valued. The stock's GF Value™ is ₹474.38, compared to a current price of ₹449.95 — trading 5.1% below its estimated fair value. The current ROE % is 24.47%, which is near median its 10-year median of 23.62 and 225.8% above the Education industry median of 7.51. Arihant Academy's overall GF Score™ is 92/100 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 Arihant Academy (NSE:ARIHANTACA), the current ROE % is 24.47% as of Jun. 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 Arihant Academy (NSE:ARIHANTACA) Overvalued in 2026?
Based on GuruFocus' analysis, Arihant Academy stock appears to be undervalued.
The current stock price of ₹449.95 is trading 5.1% below its estimated GF Value™ of ₹474.38.
GuruFocus considers Arihant Academy to be Fairly Valued.
Key valuation signals for NSE:ARIHANTACA:
ROE %: 24.47% (near median its 10-year median of 23.62)
GF Value™: ₹474.38 vs. price of ₹449.95 (5.1% below fair value)
Industry Position: 225.8% above the Education median (#30 of 261)
No single metric tells the full story. See the NSE:ARIHANTACA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arihant Academy Ltd is an education support and coaching services provider for students in secondary and higher secondary schools, for those pursuing a graduation degree in various academic streams, preparing for competitive examinations, and undertaking chartered accountancy examinations. The company follows a classroom-first model and offers coaching programs for Class 8,9,10 (SSC, ICSE, CBSE), IIT-JEE/NEET(UG)/ MHT-CET, Class 11 and 12 (State Board), and CAFC, CA-INTER, CSEET, CS-EXEC, Fintech Certification, etc. It combines classroom teaching with guided assessments, digital support tools, and practical guidance for students' progress. The company operates in one business segment, which is coaching services. Geographically, it operates within India.
92GF Score
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