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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Abbott India's 3-Year RORE % for the quarter that ended in Mar. 2026 was 18.42%.
The industry rank for Abbott India's 3-Year RORE % or its related term are showing as below:
BOM:500488's 3-Year RORE % is ranked better than 66.67% of 945
companies
in the Drug Manufacturers industry
Industry Median: 3.09
vs BOM:500488: 18.42
Abbott India (BOM:500488) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Abbott India 3-Year RORE % Related Terms
Abbott India 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Abbott India's 3-Year RORE % 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 Drug Manufacturers - Specialty & Generic subindustry, Abbott India's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Abbott India 3-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Abbott India's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Abbott India's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Abbott India (BOM:500488) has a 3-Year RORE % of 18.42 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Abbott India and its competitors. According to the industry distribution chart, Abbott India ranks #315 out of 945 companies in the Drug Manufacturers industry, placing it in the top 33.3%.
Is Abbott India's 3-Year RORE % too high?
Abbott India's current 3-Year RORE % is 18.42. The Drug Manufacturers industry median 3-Year RORE % is 3.09. Abbott India's value of 18.42 is 496.1% above this industry median. Based on the distribution chart, Abbott India ranks #315 out of 945 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Abbott India has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott India's 3-Year RORE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Abbott India ranks #315 out of 945 companies for 3-Year RORE %. This puts Abbott India in the upper half of its industry. The industry median 3-Year RORE % is 3.09. Abbott India's value of 18.42 is 496.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Drug Manufacturers company?
The median 3-Year RORE % among Drug Manufacturers companies is 3.09, based on 945 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abbott India's current 3-Year RORE % of 18.42 is 496.1% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Abbott India and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott India's current 3-Year RORE % is 18.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott India stock overvalued right now?
Based on GuruFocus' analysis, Abbott India (BOM:500488) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹32,571.98, compared to a current price of ₹27,885.85 — trading 14.4% below its estimated fair value. The current 3-Year RORE % is 18.42 and 496.1% above the Drug Manufacturers industry median of 3.09. Abbott India's overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Abbott India (BOM:500488), the current 3-Year RORE % is 18.42 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 Abbott India (BOM:500488) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott India stock appears to be undervalued.
The current stock price of ₹27,885.85 is trading 14.4% below its estimated GF Value™ of ₹32,571.98.
GuruFocus considers Abbott India to be Modestly Undervalued.
Key valuation signals for BOM:500488:
3-Year RORE %: 18.42
GF Value™: ₹32,571.98 vs. price of ₹27,885.85 (14.4% below fair value)
Industry Position: 496.1% above the Drug Manufacturers median (#315 of 945)
No single metric tells the full story. See the BOM:500488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott India Ltd is a drug manufacturing company that offers products in diagnostics, medical devices, nutritionals, and branded generic pharmaceuticals. Its patient focus centers overwhelmingly on women's health and gastrointestine, gastroenterology, and hepatic care. Geographically, the majority of the company's revenue is generated in India.
87GF Score
Get the complete analysis for BOM:500488
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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