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.
* 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:PARACABLES vs CSCO, CIEN, MSI: ROE % Comparison
For the Communication Equipment subindustry, Paramount Communications'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.
Paramount Communications ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Paramount Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Paramount Communications'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.
Paramount Communications (NSE:PARACABLES) has a ROE % of 10.55% 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 Paramount Communications and its competitors. This is 35% below median its historical median of 16.29. Over the past decade, Paramount Communications' ROE % has ranged from 1.65 to 39.15. According to the industry distribution chart, Paramount Communications ranks #889 out of 2422 companies in the Hardware industry, placing it in the top 36.7%.
Is Paramount Communications' ROE % too high?
Paramount Communications' current ROE % of 10.55% is 35% below median its 10-year median of 16.29. Over the past 10 years, this metric has ranged from a low of 1.65 to a high of 39.15. The Hardware industry median ROE % is 4.66. Paramount Communications' value of 10.55% is 126.4% above this industry median. Based on the distribution chart, Paramount Communications ranks #889 out of 2422 companies in the Hardware industry, which is above the industry midpoint. Overall, Paramount Communications has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paramount Communications' ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Paramount Communications ranks #889 out of 2422 companies for ROE %. This puts Paramount Communications in the upper half of its industry. The industry median ROE % is 4.66. Paramount Communications' value of 10.55% is 126.4% above this benchmark. Historically, Paramount Communications' own ROE % has ranged from 1.65 to 39.15 over the past decade. While the company's 10-year median is 16.29 vs. the industry median of 4.66, Paramount Communications 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 Hardware company?
The median ROE % among Hardware companies is 4.66, based on 2,422 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. Paramount Communications's current ROE % of 10.55% is 126.4% 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 Paramount Communications and its competitors. For the Hardware industry, the median ROE % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Communications's current ROE % is 10.55%, which is 35% below median its own 10-year median of 16.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Communications stock overvalued right now?
Based on GuruFocus' analysis, Paramount Communications (NSE:PARACABLES) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹86.56, compared to a current price of ₹71.12 — trading 17.8% below its estimated fair value. The current ROE % is 10.55%, which is 35% below median its 10-year median of 16.29 and 126.4% above the Hardware industry median of 4.66. Paramount Communications' overall GF Score™ is 88/100 with 7 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 Paramount Communications (NSE:PARACABLES), the current ROE % is 10.55% 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 Paramount Communications (NSE:PARACABLES) Overvalued in 2026?
Based on GuruFocus' analysis, Paramount Communications stock appears to be undervalued.
The current stock price of ₹71.12 is trading 17.8% below its estimated GF Value™ of ₹86.56.
GuruFocus considers Paramount Communications to be Modestly Undervalued.
Key valuation signals for NSE:PARACABLES:
ROE %: 10.55% (35% below median its 10-year median of 16.29)
GF Value™: ₹86.56 vs. price of ₹71.12 (17.8% below fair value)
Industry Position: 126.4% above the Hardware median (#889 of 2422)
No single metric tells the full story. See the NSE:PARACABLES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paramount Communications Ltd is a wire and cable manufacturing company. Its product portfolio consists of low-voltage and high-voltage power cables, aerial bunch cables (ABC), control and instrumentation cables, thermocouple extension and compensating cables, fire performance cables, and others. Its products are used in the power, railways, telecom and information technology (IT), petrochemicals, construction, and defense industries. The company operates in a single business segment which is Wire and Cables comprising of power cables, telecom cables, railway cables and specialised cables.
88GF Score
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