Geely Automobile HoldingsWBO:GRU -1.61%85 ROE % is 16.21% as of Dec. 2025, which is 9% below its 10-year median of 17.74. GuruFocus rates WBO:GRU with a GF Score™ of 85/100 and a GF Value™ of €2.68 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Geely Automobile Holdings ranks better than 87.92% on this metric.
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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
* 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 Auto Manufacturers subindustry, Geely Automobile Holdings'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.
Geely Automobile Holdings ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Geely Automobile Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Geely Automobile Holdings'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Geely Automobile Holdings (WBO:GRU) has a ROE % of 16.21% 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 Geely Automobile Holdings and its competitors. This is near median its historical median of 17.74. Over the past decade, Geely Automobile Holdings' ROE % has ranged from 6.62 to 36.93. According to the industry distribution chart, Geely Automobile Holdings ranks #158 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 12.1%.
Is Geely Automobile Holdings' ROE % too high?
Geely Automobile Holdings' current ROE % of 16.21% is near median its 10-year median of 17.74. Over the past 10 years, this metric has ranged from a low of 6.62 to a high of 36.93. The Vehicles & Parts industry median ROE % is 6.62. Geely Automobile Holdings' value of 16.21% is 144.9% above this industry median. Based on the distribution chart, Geely Automobile Holdings ranks #158 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Geely Automobile Holdings has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Geely Automobile Holdings' ROE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Geely Automobile Holdings ranks #158 out of 1308 companies for ROE %. This places Geely Automobile Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Geely Automobile Holdings' value of 16.21% is 144.9% above this benchmark. Historically, Geely Automobile Holdings' own ROE % has ranged from 6.62 to 36.93 over the past decade. While the company's 10-year median is 17.74 vs. the industry median of 6.62, Geely Automobile Holdings 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 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. Geely Automobile Holdings's current ROE % of 16.21% is 144.9% 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 Geely Automobile Holdings and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Geely Automobile Holdings's current ROE % is 16.21%, which is near median its own 10-year median of 17.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Geely Automobile Holdings stock overvalued right now?
Based on GuruFocus' analysis, Geely Automobile Holdings (WBO:GRU) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.68, compared to a current price of €1.90 — trading 29.3% below its estimated fair value. The current ROE % is 16.21%, which is near median its 10-year median of 17.74 and 144.9% above the Vehicles & Parts industry median of 6.62. Geely Automobile Holdings' overall GF Score™ is 85/100 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 Geely Automobile Holdings (WBO:GRU), the current ROE % is 16.21% 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.
Is Geely Automobile Holdings (WBO:GRU) Overvalued in 2026?
Based on GuruFocus' analysis, Geely Automobile Holdings stock appears to be undervalued.
The current stock price of €1.90 is trading 29.3% below its estimated GF Value™ of €2.68.
GuruFocus considers Geely Automobile Holdings to be Modestly Undervalued.
Key valuation signals for WBO:GRU:
ROE %: 16.21% (near median its 10-year median of 17.74)
GF Value™: €2.68 vs. price of €1.90 (29.3% below fair value)
Industry Position: 144.9% above the Vehicles & Parts median (#158 of 1308)
No single metric tells the full story. See the WBO:GRU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Based in Hangzhou, Zhejiang province, Geely Auto manufactures and sells passenger vehicles and automotive parts. Geely is the largest local brand manufacturer and the third-largest passenger vehicle brand in terms of sales volume in China. Including Lynk & Co, Geely sold about 3 million cars in 2025. The domestic market accounts for more than 75% of Geely's revenue, with the rest coming from other parts of the world.
85GF Score
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