Pakistan State Oil CoKAR:PSO -1.22%83 Interest Coverage is 10.50 as of Mar. 2026, which is 412% above its 10-year median of 2.05. GuruFocus rates KAR:PSO with a GF Score™ of 83/100 and a GF Value™ of ₨253.11 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 731 Oil & Gas companies, Pakistan State Oil Co ranks worse than 55.27% 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 State Oil Co's
Operating Income
for the
three
months ended in Mar. 2026 was ₨71,687 Mil. Pakistan State Oil Co's Interest Expense for the
three
months ended in Mar. 2026 was ₨-6,826 Mil.
Pakistan State Oil Co's interest coverage for the quarter that ended in Mar. 2026 was 10.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pakistan State Oil Co's Interest Coverage or its related term are showing as below:
KAR:PSO'
s Interest Coverage Range Over the Past 10 Years
Min: 1.13 Med: 2.05 Max: 27.72
Current: 4.65
KAR:PSO's Interest Coverage is ranked worse than 55.27% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs KAR:PSO: 4.65
Pakistan State Oil Co (KAR:PSO) Interest Coverage Explanation
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 State Oil Co Interest Coverage Related Terms
Pakistan State Oil Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pakistan State Oil Co'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:PSO vs VLO, MPC, PSX: Interest Coverage Comparison
For the Oil & Gas Refining & Marketing subindustry, Pakistan State Oil Co'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 State Oil Co Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pakistan State Oil Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pakistan State Oil Co's Interest Coverage falls into.
Pakistan State Oil Co Interest Coverage Calculation
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 State Oil Co (KAR:PSO) has a Interest Coverage of 10.50 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pakistan State Oil Co and its competitors. This is 412% above median its historical median of 2.05. Over the past decade, Pakistan State Oil Co's Interest Coverage has ranged from 1.13 to 27.72. According to the industry distribution chart, Pakistan State Oil Co ranks #404 out of 731 companies in the Oil & Gas industry, placing it in the top 55.3%.
Is Pakistan State Oil Co's Interest Coverage too high?
Pakistan State Oil Co's current Interest Coverage of 10.50 is 412% above median its 10-year median of 2.05. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 27.72. The Oil & Gas industry median Interest Coverage is 5.89. Pakistan State Oil Co's value of 10.50 is 78.3% above this industry median. Based on the distribution chart, Pakistan State Oil Co ranks #404 out of 731 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Pakistan State Oil Co has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pakistan State Oil Co's Interest Coverage compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Pakistan State Oil Co ranks #404 out of 731 companies for Interest Coverage. This places Pakistan State Oil Co in the lower half of its industry. The industry median Interest Coverage is 5.89. Pakistan State Oil Co's value of 10.50 is 78.3% above this benchmark. Historically, Pakistan State Oil Co's own Interest Coverage has ranged from 1.13 to 27.72 over the past decade. While the company's 10-year median is 2.05 vs. the industry median of 5.89, Pakistan State Oil Co 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 5.89, based on 731 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 State Oil Co's current Interest Coverage of 10.50 is 78.3% 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 State Oil Co and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan State Oil Co's current Interest Coverage is 10.50, which is 412% above median its own 10-year median of 2.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan State Oil Co stock overvalued right now?
Based on GuruFocus' analysis, Pakistan State Oil Co (KAR:PSO) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨253.11, compared to a current price of ₨346.62 — trading 36.9% above its estimated fair value. The current Interest Coverage is 10.50, which is 412% above median its 10-year median of 2.05 and 78.3% above the Oil & Gas industry median of 5.89. Pakistan State Oil Co's overall GF Score™ is 83/100 with 2 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 State Oil Co (KAR:PSO), the current Interest Coverage is 10.50 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 State Oil Co (KAR:PSO) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan State Oil Co stock appears to be overvalued.
The current stock price of ₨346.62 is trading 36.9% above its estimated GF Value™ of ₨253.11.
GuruFocus considers Pakistan State Oil Co to be Significantly Overvalued.
Key valuation signals for KAR:PSO:
Interest Coverage: 10.50 (412% above median its 10-year median of 2.05)
GF Value™: ₨253.11 vs. price of ₨346.62 (36.9% above fair value)
Industry Position: 78.3% above the Oil & Gas median (#404 of 731)
No single metric tells the full story. See the KAR:PSO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan State Oil Co Ltd is engaged in the procurement, storage, and marketing of petroleum and related products. It also blends and markets lubricating oils. It comprises three reportable segments: Petroleum products, Liquefied Natural Gas (LNG), and Others. The majority of the company's revenues are derived from the petroleum products segment.
83GF Score
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