Hoechst Pakistan (KAR:HPL) EV-to-EBIT: 6.85 (As of Aug. 03, 2026) — 20% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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KAR:HPL Hoechst Pakistan Ltd KAR:HPL
88 GF Score
Price ₨4,010.71
GF Value ₨3,312.86
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is Hoechst Pakistan EV-to-EBIT?

Hoechst Pakistan KAR:HPL +0.32% 88 EV-to-EBIT is 6.85 as of Aug. 03, 2026, which is 20% below its 10-year median of 8.61. GuruFocus rates KAR:HPL with a GF Score™ of 88/100 and a GF Value™ of ₨3,312.86 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 691 Drug Manufacturers companies, Hoechst Pakistan ranks better than 83.07% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Hoechst Pakistan's Enterprise Value is ₨35,647 Mil. Hoechst Pakistan's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was ₨5,206 Mil. Therefore, Hoechst Pakistan's EV-to-EBIT for today is 6.85.

The historical rank and industry rank for Hoechst Pakistan's EV-to-EBIT or its related term are showing as below:

KAR:HPL' s EV-to-EBIT Range Over the Past 10 Years
Min: -24.44   Med: 8.61   Max: 58.5
Current: 6.84

During the past 13 years, the highest EV-to-EBIT of Hoechst Pakistan was 58.50. The lowest was -24.44. And the median was 8.61.

KAR:HPL's EV-to-EBIT is ranked better than
83.07% of 691 companies
in the Drug Manufacturers industry
Industry Median: 15.59 vs KAR:HPL: 6.84

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Hoechst Pakistan's Enterprise Value for the quarter that ended in Mar. 2026 was ₨36,939 Mil. Hoechst Pakistan's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was ₨5,206 Mil. Hoechst Pakistan's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 14.09%.


Hoechst Pakistan  (KAR:HPL) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Hoechst Pakistan's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2026 ) =EBIT / Enterprise Value (Q: Mar. 2026 )
=5205.772/36938.5204
=14.09 %

Hoechst Pakistan's Enterprise Value for the quarter that ended in Mar. 2026 was ₨36,939 Mil.
Hoechst Pakistan's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₨5,206 Mil.

* 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.


Hoechst Pakistan EV-to-EBIT Related Terms


Hoechst Pakistan EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Hoechst Pakistan's EV-to-EBIT 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.

Hoechst Pakistan EV-to-EBIT Chart

Hoechst Pakistan Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.59 14.24 13.08 8.67 7.84

Hoechst Pakistan Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.57 7.56 8.07 7.84 7.10

KAR:HPL vs LLY, JNJ, ABBV: EV-to-EBIT Comparison

For the Drug Manufacturers - General subindustry, Hoechst Pakistan's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


Hoechst Pakistan EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hoechst Pakistan's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Hoechst Pakistan's EV-to-EBIT falls into.


KAR:HPL
88GF Score
Hoechst Pakistan Ltd KAR:HPL
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hoechst Pakistan EV-to-EBIT Calculation

Hoechst Pakistan's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=35646.960/5205.772
=6.85

Hoechst Pakistan's current Enterprise Value is ₨35,647 Mil.
Hoechst Pakistan's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₨5,206 Mil.

* 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 6.85 mean?
Hoechst Pakistan (KAR:HPL) has a EV-to-EBIT of 6.85 as of Aug. 03, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Hoechst Pakistan and its competitors. This is 20% below median its historical median of 8.61. According to the industry distribution chart, Hoechst Pakistan ranks #117 out of 691 companies in the Drug Manufacturers industry, placing it in the top 16.9%.
Is Hoechst Pakistan's EV-to-EBIT too high?
Hoechst Pakistan's current EV-to-EBIT of 6.85 is 20% below median its 10-year median of 8.61. The Drug Manufacturers industry median EV-to-EBIT is 15.59. Hoechst Pakistan's value of 6.85 is 56.1% below this industry median. Based on the distribution chart, Hoechst Pakistan ranks #117 out of 691 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hoechst Pakistan has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoechst Pakistan's EV-to-EBIT compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hoechst Pakistan ranks #117 out of 691 companies for EV-to-EBIT. This places Hoechst Pakistan in the top 17% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 15.59. Hoechst Pakistan's value of 6.85 is 56.1% below this benchmark. While the company's 10-year median is 8.61 vs. the industry median of 15.59, Hoechst Pakistan has consistently been below 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 EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.59, based on 691 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hoechst Pakistan's current EV-to-EBIT of 6.85 is 56.1% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Hoechst Pakistan and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoechst Pakistan's current EV-to-EBIT is 6.85, which is 20% below median its own 10-year median of 8.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoechst Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Hoechst Pakistan (KAR:HPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨3,312.86, compared to a current price of ₨4,010.71 — trading 21.1% above its estimated fair value. The current EV-to-EBIT is 6.85, which is 20% below median its 10-year median of 8.61 and 56.1% below the Drug Manufacturers industry median of 15.59. Hoechst Pakistan's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Hoechst Pakistan (KAR:HPL), the current EV-to-EBIT is 6.85 as of Aug. 03, 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 Hoechst Pakistan (KAR:HPL) Overvalued in 2026?

Based on GuruFocus' analysis, Hoechst Pakistan stock appears to be overvalued. The current stock price of ₨4,010.71 is trading 21.1% above its estimated GF Value™ of ₨3,312.86. GuruFocus considers Hoechst Pakistan to be Modestly Overvalued.

Key valuation signals for KAR:HPL:

  • EV-to-EBIT: 6.85 (20% below median its 10-year median of 8.61)
  • GF Value™: ₨3,312.86 vs. price of ₨4,010.71 (21.1% above fair value)
  • GF Score™: 88/100 with 1 warning sign
  • Industry Position: 56.1% below the Drug Manufacturers median (#117 of 691)

No single metric tells the full story. See the KAR:HPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hoechst Pakistan Business Description

Address Plot 23, Sector 22, Korangi Industrial Area, Karachi, PAK, 74900
Hoechst Pakistan Ltd is a healthcare company of Pakistan, focused on patient needs and engaged in the manufacturing, promotion, and sale of pharmaceutical and vaccines. The company engages in the manufacturing, selling and trading of pharmaceutical and related products.
88GF Score

Get the complete analysis for KAR:HPL

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨4,010.71
Price
₨3,312.86
GF Value