Company Analysis
Picking good companies with ROE
Buffett's first check — ROE shows how well a company turns your equity into profit.
Once you've got PER and PBR down, next is ROE (return on equity). It shows, as a %, how much profit a company made on shareholders' equity in a year. Formula: net income ÷ equity × 100.
Quick check
What does a 15% ROE mean?
Valuation like a proSTEP 1 / 3
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