Pakistan PetroleumKAR:PPL +1.50%78 Interest Coverage is 58.17 as of Mar. 2026, which is 25% below its 10-year median of 77.81. GuruFocus rates KAR:PPL with a GF Score™ of 78/100 and a GF Value™ of ₨79.27 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 728 Oil & Gas companies, Pakistan Petroleum ranks better than 81.87% 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. Pakistan Petroleum's
Operating Income
for the
three
months ended in Mar. 2026 was ₨28,021 Mil. Pakistan Petroleum's Interest Expense for the
three
months ended in Mar. 2026 was ₨-482 Mil.
Pakistan Petroleum's interest coverage for the quarter that ended in Mar. 2026 was 58.17.
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. Pakistan Petroleum Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Pakistan Petroleum's Interest Coverage or its related term are showing as below:
KAR:PPL'
s Interest Coverage Range Over the Past 10 Years
Min: 35.73 Med: 77.81 Max: 121.32
Current: 54.06
KAR:PPL's Interest Coverage is ranked better than 81.87% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs KAR:PPL: 54.06
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 .
Pakistan Petroleum Interest Coverage Related Terms
Pakistan Petroleum Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pakistan Petroleum'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:PPL vs COP, EOG, OXY: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Pakistan Petroleum'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.
Pakistan Petroleum Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pakistan Petroleum's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pakistan Petroleum'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.
Pakistan Petroleum (KAR:PPL) has a Interest Coverage of 58.17 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pakistan Petroleum and its competitors. This is 25% below median its historical median of 77.81. Over the past decade, Pakistan Petroleum's Interest Coverage has ranged from 35.73 to 121.32. According to the industry distribution chart, Pakistan Petroleum ranks #132 out of 728 companies in the Oil & Gas industry, placing it in the top 18.1%.
Is Pakistan Petroleum's Interest Coverage too high?
Pakistan Petroleum's current Interest Coverage of 58.17 is 25% below median its 10-year median of 77.81. Over the past 10 years, this metric has ranged from a low of 35.73 to a high of 121.32. The Oil & Gas industry median Interest Coverage is 5.84. Pakistan Petroleum's value of 58.17 is 896.1% above this industry median. Based on the distribution chart, Pakistan Petroleum ranks #132 out of 728 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Pakistan Petroleum has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pakistan Petroleum's Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Pakistan Petroleum ranks #132 out of 728 companies for Interest Coverage. This places Pakistan Petroleum in the top 18% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.84. Pakistan Petroleum's value of 58.17 is 896.1% above this benchmark. Historically, Pakistan Petroleum's own Interest Coverage has ranged from 35.73 to 121.32 over the past decade. While the company's 10-year median is 77.81 vs. the industry median of 5.84, Pakistan Petroleum 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 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. Pakistan Petroleum's current Interest Coverage of 58.17 is 896.1% 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 Pakistan Petroleum and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan Petroleum's current Interest Coverage is 58.17, which is 25% below median its own 10-year median of 77.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Pakistan Petroleum (KAR:PPL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨79.27, compared to a current price of ₨247.98 — trading 212.8% above its estimated fair value. The current Interest Coverage is 58.17, which is 25% below median its 10-year median of 77.81 and 896.1% above the Oil & Gas industry median of 5.84. Pakistan Petroleum's overall GF Score™ is 78/100 with 4 warning signs 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 Pakistan Petroleum (KAR:PPL), the current Interest Coverage is 58.17 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 Pakistan Petroleum (KAR:PPL) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan Petroleum stock appears to be overvalued.
The current stock price of ₨247.98 is trading 212.8% above its estimated GF Value™ of ₨79.27.
GuruFocus considers Pakistan Petroleum to be Significantly Overvalued.
Key valuation signals for KAR:PPL:
Interest Coverage: 58.17 (25% below median its 10-year median of 77.81)
GF Value™: ₨79.27 vs. price of ₨247.98 (212.8% above fair value)
Industry Position: 896.1% above the Oil & Gas median (#132 of 728)
No single metric tells the full story. See the KAR:PPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan Petroleum Ltd, or PPL along with its subsidiaries is engaged in conducting exploration, prospecting, development, and production of oil and natural gas resources. The company is organised into one operating segment i.e. exploration, development and production of oil, gas and barytes. It operates several producing fields across the country at Sui, Adhi, Kandhkot, Chachar, Mazarani, Adam, Adam West, Shadadpur and Shahdadpur West.
78GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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