Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Pakistan Stock Exchange Operating Margin % Related Terms
Pakistan Stock Exchange Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pakistan Stock Exchange's Operating Margin % 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.
KAR:PSX vs SPGI, CME, ICE: Operating Margin % Comparison
For the Financial Data & Stock Exchanges subindustry, Pakistan Stock Exchange's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Stock Exchange Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Pakistan Stock Exchange's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pakistan Stock Exchange's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Pakistan Stock Exchange's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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 Stock Exchange (KAR:PSX) has a Operating Margin % of 22.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pakistan Stock Exchange and its competitors. According to the industry distribution chart, Pakistan Stock Exchange ranks #245 out of 664 companies in the Capital Markets industry, placing it in the top 36.9%.
Is Pakistan Stock Exchange's Operating Margin % too high?
Pakistan Stock Exchange's current Operating Margin % is 22.89%. The Capital Markets industry median Operating Margin % is 6.96. Pakistan Stock Exchange's value of 22.89% is 229.1% above this industry median. Based on the distribution chart, Pakistan Stock Exchange ranks #245 out of 664 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Pakistan Stock Exchange has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pakistan Stock Exchange's Operating Margin % compare to SPGI and CME?
According to the Capital Markets industry distribution chart, Pakistan Stock Exchange ranks #245 out of 664 companies for Operating Margin %. This puts Pakistan Stock Exchange in the upper half of its industry. The industry median Operating Margin % is 6.96. Pakistan Stock Exchange's value of 22.89% is 229.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Capital Markets company?
The median Operating Margin % among Capital Markets companies is 6.96, based on 664 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pakistan Stock Exchange's current Operating Margin % of 22.89% is 229.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Pakistan Stock Exchange and its competitors. For the Capital Markets industry, the median Operating Margin % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan Stock Exchange's current Operating Margin % is 22.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan Stock Exchange stock overvalued right now?
Based on GuruFocus' analysis, Pakistan Stock Exchange (KAR:PSX) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨28.01, compared to a current price of ₨49.72 — trading 77.5% above its estimated fair value. The current Operating Margin % is 22.89% and 229.1% above the Capital Markets industry median of 6.96. Pakistan Stock Exchange's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Pakistan Stock Exchange (KAR:PSX), the current Operating Margin % is 22.89% 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 Stock Exchange (KAR:PSX) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan Stock Exchange stock appears to be overvalued.
The current stock price of ₨49.72 is trading 77.5% above its estimated GF Value™ of ₨28.01.
GuruFocus considers Pakistan Stock Exchange to be Significantly Overvalued.
Key valuation signals for KAR:PSX:
Operating Margin %: 22.89%
GF Value™: ₨28.01 vs. price of ₨49.72 (77.5% above fair value)
Industry Position: 229.1% above the Capital Markets median (#245 of 664)
No single metric tells the full story. See the KAR:PSX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan Stock Exchange Ltd is engaged in conducting, regulating and controlling the trade or business of purchasing, selling and trading in debentures stock, government papers, shares, scrips, stocks, bonds, loans, and any other instruments and securities. The products of the company involve Equity Segments, known as Ready Market (T+2), Bills & Bonds (for trading in government debt securities & corporate debt), Futures Counter, Deliverable Futures Contracts, Stock Index Futures, Negotiated Deal Market, REIT, Exchange Traded Funds and GEM Board.
70GF Score
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