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.
IRB Infrastructure Developers ROE % Related Terms
IRB Infrastructure Developers ROE % Historical Data
* 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 Infrastructure Operations subindustry, IRB Infrastructure Developers'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.
IRB Infrastructure Developers ROE % vs Construction Industry
For the Construction industry and Industrials sector, IRB Infrastructure Developers's ROE % distribution charts can be found below:
* The bar in red indicates where IRB Infrastructure Developers'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.
IRB Infrastructure Developers (NSE:IRB) has a ROE % of 5.66% 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 IRB Infrastructure Developers and its competitors. This is 32% below median its historical median of 8.32. Over the past decade, IRB Infrastructure Developers' ROE % has ranged from 1.72 to 38.61. According to the industry distribution chart, IRB Infrastructure Developers ranks #1063 out of 1743 companies in the Construction industry, placing it in the top 61%.
Is IRB Infrastructure Developers' ROE % too high?
IRB Infrastructure Developers' current ROE % of 5.66% is 32% below median its 10-year median of 8.32. Over the past 10 years, this metric has ranged from a low of 1.72 to a high of 38.61. The Construction industry median ROE % is 6.69. IRB Infrastructure Developers' value of 5.66% is 15.4% below this industry median. Based on the distribution chart, IRB Infrastructure Developers ranks #1063 out of 1743 companies in the Construction industry, which is below the industry midpoint. Overall, IRB Infrastructure Developers has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does IRB Infrastructure Developers' ROE % compare to competitors?
According to the Construction industry distribution chart, IRB Infrastructure Developers ranks #1063 out of 1743 companies for ROE %. This places IRB Infrastructure Developers in the lower half of its industry. The industry median ROE % is 6.69. IRB Infrastructure Developers' value of 5.66% is 15.4% below this benchmark. Historically, IRB Infrastructure Developers' own ROE % has ranged from 1.72 to 38.61 over the past decade. While the company's 10-year median is 8.32 vs. the industry median of 6.69, IRB Infrastructure Developers has consistently been below 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 Construction company?
The median ROE % among Construction companies is 6.69, based on 1,743 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. IRB Infrastructure Developers's current ROE % of 5.66% is 15.4% below 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 IRB Infrastructure Developers and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IRB Infrastructure Developers's current ROE % is 5.66%, which is 32% below median its own 10-year median of 8.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IRB Infrastructure Developers stock overvalued right now?
Based on GuruFocus' analysis, IRB Infrastructure Developers (NSE:IRB) is currently considered Fairly Valued. The stock's GF Value™ is ₹21.54, compared to a current price of ₹21.19 — trading 1.6% below its estimated fair value. The current ROE % is 5.66%, which is 32% below median its 10-year median of 8.32 and 15.4% below the Construction industry median of 6.69. IRB Infrastructure Developers' overall GF Score™ is 71/100 with 8 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 IRB Infrastructure Developers (NSE:IRB), the current ROE % is 5.66% 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 IRB Infrastructure Developers (NSE:IRB) Overvalued in 2026?
Based on GuruFocus' analysis, IRB Infrastructure Developers stock appears to be undervalued.
The current stock price of ₹21.19 is trading 1.6% below its estimated GF Value™ of ₹21.54.
GuruFocus considers IRB Infrastructure Developers to be Fairly Valued.
Key valuation signals for NSE:IRB:
ROE %: 5.66% (32% below median its 10-year median of 8.32)
GF Value™: ₹21.54 vs. price of ₹21.19 (1.6% below fair value)
Industry Position: 15.4% below the Construction median (#1063 of 1743)
No single metric tells the full story. See the NSE:IRB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IRB Infrastructure Developers Business Description
IRB Infrastructure Developers Ltd is an infrastructure and construction company. The company organizes itself into segments: Built, Operate and Transfer (BOT)/ Toll, Operate and Transfer (TOT) segment consist of operation and maintenance of roads; InvITs & Related Assets segment consists of investments in units of IRB Infrastructure Trust, IRB InvIT Fund and other related assets; and Construction segment consists of development and maintenance of roads. It derives maximum revenue from Construction segment.
71GF Score
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