Nestle PakistanKAR:NESTLE +0.05%80 Return-on-Tangible-Equity is 93.59% as of Mar. 2026, which is 56% below its 10-year median of 210.74. GuruFocus rates KAR:NESTLE with a GF Score™ of 80/100 and a GF Value™ of ₨7,872.61 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,872 Consumer Packaged Goods companies, Nestle Pakistan ranks better than 94.39% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Nestle Pakistan's annualized net income for the quarter that ended in Mar. 2026 was ₨22,446 Mil. Nestle Pakistan's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨23,983 Mil. Therefore, Nestle Pakistan's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 93.59%.
The historical rank and industry rank for Nestle Pakistan's Return-on-Tangible-Equity or its related term are showing as below:
KAR:NESTLE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 74.26 Med: 210.74 Max: 269.55
Current: 74.26
During the past 13 years, Nestle Pakistan's highest Return-on-Tangible-Equity was 269.55%. The lowest was 74.26%. And the median was 210.74%.
KAR:NESTLE's Return-on-Tangible-Equity is ranked better than 94.39% of 1872
companies
in the Consumer Packaged Goods industry
Industry Median: 7.715
vs KAR:NESTLE: 74.26
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Nestle Pakistan Return-on-Tangible-Equity Related Terms
Nestle Pakistan Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nestle Pakistan's Return-on-Tangible-Equity 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:NESTLE vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Nestle Pakistan's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Pakistan's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nestle Pakistan's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 93.59% mean?
Nestle Pakistan (KAR:NESTLE) has a Return-on-Tangible-Equity of 93.59% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nestle Pakistan and its competitors. This is 56% below median its historical median of 210.74. Over the past decade, Nestle Pakistan's Return-on-Tangible-Equity has ranged from 74.26 to 269.55. According to the industry distribution chart, Nestle Pakistan ranks #105 out of 1872 companies in the Consumer Packaged Goods industry, placing it in the top 5.6%.
Is Nestle Pakistan's Return-on-Tangible-Equity too high?
Nestle Pakistan's current Return-on-Tangible-Equity of 93.59% is 56% below median its 10-year median of 210.74. Over the past 10 years, this metric has ranged from a low of 74.26 to a high of 269.55. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.72. Nestle Pakistan's value of 93.59% is 1113.1% above this industry median. Based on the distribution chart, Nestle Pakistan ranks #105 out of 1872 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 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle Pakistan's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Pakistan ranks #105 out of 1872 companies for Return-on-Tangible-Equity. This places Nestle Pakistan in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.72. Nestle Pakistan's value of 93.59% is 1113.1% above this benchmark. Historically, Nestle Pakistan's own Return-on-Tangible-Equity has ranged from 74.26 to 269.55 over the past decade. While the company's 10-year median is 210.74 vs. the industry median of 7.72, 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 Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.72, based on 1,872 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nestle Pakistan's current Return-on-Tangible-Equity of 93.59% is 1113.1% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nestle Pakistan and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Pakistan's current Return-on-Tangible-Equity is 93.59%, which is 56% below median its own 10-year median of 210.74. 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 ₨7,872.61, compared to a current price of ₨7,699.43 — trading 2.2% below its estimated fair value. The current Return-on-Tangible-Equity is 93.59%, which is 56% below median its 10-year median of 210.74 and 1113.1% above the Consumer Packaged Goods industry median of 7.72. Nestle Pakistan's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Nestle Pakistan (KAR:NESTLE), the current Return-on-Tangible-Equity is 93.59% 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 ₨7,699.43 is trading 2.2% below its estimated GF Value™ of ₨7,872.61.
GuruFocus considers Nestle Pakistan to be Fairly Valued.
Key valuation signals for KAR:NESTLE:
Return-on-Tangible-Equity: 93.59% (56% below median its 10-year median of 210.74)
GF Value™: ₨7,872.61 vs. price of ₨7,699.43 (2.2% below fair value)
Industry Position: 1113.1% above the Consumer Packaged Goods median (#105 of 1872)
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.
80GF Score
Get the complete analysis for KAR:NESTLE
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KAR:NESTLE has been successfully added to your 
