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.
Deutsche Telekom AG's 3-Year RORE % for the quarter that ended in Mar. 2026 was 20.88%.
The industry rank for Deutsche Telekom AG's 3-Year RORE % or its related term are showing as below:
XSWX:DTE's 3-Year RORE % is ranked better than 73.24% of 340
companies
in the Telecommunication Services industry
Industry Median: 6.79
vs XSWX:DTE: 20.88
Deutsche Telekom AG (XSWX:DTE) 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.
Deutsche Telekom AG 3-Year RORE % Related Terms
Deutsche Telekom AG 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Deutsche Telekom AG'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 Telecom Services subindustry, Deutsche Telekom AG'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.
Deutsche Telekom AG 3-Year RORE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Deutsche Telekom AG's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Deutsche Telekom AG'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.
Deutsche Telekom AG (XSWX:DTE) has a 3-Year RORE % of 20.88 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 Deutsche Telekom AG and its competitors. According to the industry distribution chart, Deutsche Telekom AG ranks #91 out of 340 companies in the Telecommunication Services industry, placing it in the top 26.8%.
Is Deutsche Telekom AG's 3-Year RORE % too high?
Deutsche Telekom AG's current 3-Year RORE % is 20.88. The Telecommunication Services industry median 3-Year RORE % is 6.79. Deutsche Telekom AG's value of 20.88 is 207.5% above this industry median. Based on the distribution chart, Deutsche Telekom AG ranks #91 out of 340 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Deutsche Telekom AG has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Deutsche Telekom AG's 3-Year RORE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Deutsche Telekom AG ranks #91 out of 340 companies for 3-Year RORE %. This puts Deutsche Telekom AG in the upper half of its industry. The industry median 3-Year RORE % is 6.79. Deutsche Telekom AG's value of 20.88 is 207.5% 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 Telecommunication Services company?
The median 3-Year RORE % among Telecommunication Services companies is 6.79, based on 340 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. Deutsche Telekom AG's current 3-Year RORE % of 20.88 is 207.5% 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 Deutsche Telekom AG and its competitors. For the Telecommunication Services industry, the median 3-Year RORE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deutsche Telekom AG's current 3-Year RORE % is 20.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Telekom AG stock overvalued right now?
Based on GuruFocus' analysis, Deutsche Telekom AG (XSWX:DTE) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF24.96, compared to a current price of CHF22.56 — trading 9.6% below its estimated fair value. The current 3-Year RORE % is 20.88 and 207.5% above the Telecommunication Services industry median of 6.79. Deutsche Telekom AG's overall GF Score™ is 72/100 with 2 warning signs 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 Deutsche Telekom AG (XSWX:DTE), the current 3-Year RORE % is 20.88 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 Deutsche Telekom AG (XSWX:DTE) Overvalued in 2026?
Based on GuruFocus' analysis, Deutsche Telekom AG stock appears to be undervalued.
The current stock price of CHF22.56 is trading 9.6% below its estimated GF Value™ of CHF24.96.
GuruFocus considers Deutsche Telekom AG to be Modestly Undervalued.
Key valuation signals for XSWX:DTE:
3-Year RORE %: 20.88
GF Value™: CHF24.96 vs. price of CHF22.56 (9.6% below fair value)
Industry Position: 207.5% above the Telecommunication Services median (#91 of 340)
No single metric tells the full story. See the XSWX:DTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deutsche Telekom is Germany's incumbent telecom operator and remains the dominant player in mobile and fixed markets. It also owns a controlling stake in T-Mobile US—one of three primary wireless carriers in the United States—which merged with Sprint in 2020, consolidating the market from four to three operators. Aside from its two core markets, Deutsche Telekom operates in several Central European countries and holds an IT arm (Systems Solutions).
72GF Score
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