Return On Equity ROE is one of the things that fundamental investor looking for besides earning per share (EPS), price to earning ratio (PER) and etc. ROE is my top priority in analyzing the company, follow by EPS and PER. What is ROE?
“ROE is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested”-from Investopedia. Mathematically, ROE means net income divide by total equity.
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