Nestle PakistanKAR:NESTLE 79 Interest Coverage is 103.05 as of Mar. 2026, which is 816% above its 10-year median of 11.25. GuruFocus rates KAR:NESTLE with a GF Score™ of 79/100 and a GF Value™ of ₨7,860.85 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,510 Consumer Packaged Goods companies, Nestle Pakistan ranks better than 82.32% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Nestle Pakistan's
Operating Income
for the
three
months ended in Mar. 2026 was ₨9,979 Mil. Nestle Pakistan's Interest Expense for the
three
months ended in Mar. 2026 was ₨-97 Mil.
Nestle Pakistan's interest coverage for the quarter that ended in Mar. 2026 was 103.05.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Nestle Pakistan Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Nestle Pakistan's Interest Coverage or its related term are showing as below:
KAR:NESTLE'
s Interest Coverage Range Over the Past 10 Years
Min: 4.56 Med: 11.25 Max: 76.06
Current: 76.06
KAR:NESTLE's Interest Coverage is ranked better than 82.32% of 1510
companies
in the Consumer Packaged Goods industry
Industry Median: 8.64
vs KAR:NESTLE: 76.06
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Nestle Pakistan Interest Coverage Related Terms
Nestle Pakistan Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nestle Pakistan's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
KAR:NESTLE vs KHC, GIS: Interest Coverage Comparison
For the Packaged Foods subindustry, Nestle Pakistan's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Nestle Pakistan Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Pakistan's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nestle Pakistan's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Nestle Pakistan (KAR:NESTLE) has a Interest Coverage of 103.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nestle Pakistan and its competitors. This is 816% above median its historical median of 11.25. Over the past decade, Nestle Pakistan's Interest Coverage has ranged from 4.56 to 76.06. According to the industry distribution chart, Nestle Pakistan ranks #267 out of 1510 companies in the Consumer Packaged Goods industry, placing it in the top 17.7%.
Is Nestle Pakistan's Interest Coverage too high?
Nestle Pakistan's current Interest Coverage of 103.05 is 816% above median its 10-year median of 11.25. Over the past 10 years, this metric has ranged from a low of 4.56 to a high of 76.06. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Nestle Pakistan's value of 103.05 is 1092.7% above this industry median. Based on the distribution chart, Nestle Pakistan ranks #267 out of 1510 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle Pakistan has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle Pakistan's Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Pakistan ranks #267 out of 1510 companies for Interest Coverage. This places Nestle Pakistan in the top 18% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.64. Nestle Pakistan's value of 103.05 is 1092.7% above this benchmark. Historically, Nestle Pakistan's own Interest Coverage has ranged from 4.56 to 76.06 over the past decade. While the company's 10-year median is 11.25 vs. the industry median of 8.64, Nestle Pakistan has consistently been above 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 Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nestle Pakistan's current Interest Coverage of 103.05 is 1092.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nestle Pakistan and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Pakistan's current Interest Coverage is 103.05, which is 816% above median its own 10-year median of 11.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Nestle Pakistan (KAR:NESTLE) is currently considered Fairly Valued. The stock's GF Value™ is ₨7,860.85, compared to a current price of ₨7,649.62 — trading 2.7% below its estimated fair value. The current Interest Coverage is 103.05, which is 816% above median its 10-year median of 11.25 and 1092.7% above the Consumer Packaged Goods industry median of 8.64. Nestle Pakistan's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Nestle Pakistan (KAR:NESTLE), the current Interest Coverage is 103.05 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 Nestle Pakistan (KAR:NESTLE) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Pakistan stock appears to be undervalued.
The current stock price of ₨7,649.62 is trading 2.7% below its estimated GF Value™ of ₨7,860.85.
GuruFocus considers Nestle Pakistan to be Fairly Valued.
Key valuation signals for KAR:NESTLE:
Interest Coverage: 103.05 (816% above median its 10-year median of 11.25)
GF Value™: ₨7,860.85 vs. price of ₨7,649.62 (2.7% below fair value)
Industry Position: 1092.7% above the Consumer Packaged Goods median (#267 of 1510)
No single metric tells the full story. See the KAR:NESTLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Pakistan Ltd is principally engaged in manufacturing, processing, and selling dairy, nutrition, beverages, and food products, including imported products. The company's product line consists of dairy, coffee, water, juices, nectars, & fruit drinks, infant nutrition, breakfast cereals, and Nestle professionals. Its segments include Dairy and Nutrition Products, which include milk-based products; Powdered and Liquid Beverages include juices, drinking water, and powdered drinks; Other Products include confectionery, cereals, and other products. It derives the majority of its revenue from the Dairy and Nutrition Products segments.
79GF Score
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