Bank AlfalahKAR:BAFL -0.59%64 ROE % is 22.49% as of Mar. 2026, which is 49% above its 10-year median of 15.06. GuruFocus rates KAR:BAFL with a GF Score™ of 64/100 and a GF Value™ of ₨37.10 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,524 Banks companies, Bank Alfalah ranks better than 85.63% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Bank Alfalah's annualized net income for the quarter that ended in Mar. 2026 was ₨43,945 Mil. Bank Alfalah's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₨195,435 Mil. Therefore, Bank Alfalah's annualized ROE % for the quarter that ended in Mar. 2026 was 22.49%.
The historical rank and industry rank for Bank Alfalah's ROE % or its related term are showing as below:
KAR:BAFL'
s ROE % Range Over the Past 10 Years
Min: 11.92 Med: 15.06 Max: 30.19
Current: 16.54
During the past 13 years, Bank Alfalah's highest ROE % was 30.19%. The lowest was 11.92%. And the median was 15.06%.
KAR:BAFL's ROE % is ranked better than 85.63% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs KAR:BAFL: 16.54
Bank Alfalah (KAR:BAFL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Bank Alfalah ROE % Related Terms
Bank Alfalah ROE % Historical Data
* Premium members only.
The historical data trend for Bank Alfalah's ROE % 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.
For the Banks - Regional subindustry, Bank Alfalah's ROE %, along with its competitors' market caps and ROE % 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.
Bank Alfalah ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Bank Alfalah's ROE % distribution charts can be found below:
* The bar in red indicates where Bank Alfalah's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Bank Alfalah (KAR:BAFL) has a ROE % of 22.49% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bank Alfalah and its competitors. This is 49% above median its historical median of 15.06. Over the past decade, Bank Alfalah's ROE % has ranged from 11.92 to 30.19. According to the industry distribution chart, Bank Alfalah ranks #219 out of 1524 companies in the Banks industry, placing it in the top 14.4%.
Is Bank Alfalah's ROE % too high?
Bank Alfalah's current ROE % of 22.49% is 49% above median its 10-year median of 15.06. Over the past 10 years, this metric has ranged from a low of 11.92 to a high of 30.19. The Banks industry median ROE % is 10.22. Bank Alfalah's value of 22.49% is 120.1% above this industry median. Based on the distribution chart, Bank Alfalah ranks #219 out of 1524 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Bank Alfalah has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank Alfalah's ROE % compare to competitors?
According to the Banks industry distribution chart, Bank Alfalah ranks #219 out of 1524 companies for ROE %. This places Bank Alfalah in the top 14% of its industry — outperforming the majority of peers. The industry median ROE % is 10.22. Bank Alfalah's value of 22.49% is 120.1% above this benchmark. Historically, Bank Alfalah's own ROE % has ranged from 11.92 to 30.19 over the past decade. While the company's 10-year median is 15.06 vs. the industry median of 10.22, Bank Alfalah 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bank Alfalah's current ROE % of 22.49% is 120.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bank Alfalah and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank Alfalah's current ROE % is 22.49%, which is 49% above median its own 10-year median of 15.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank Alfalah stock overvalued right now?
Based on GuruFocus' analysis, Bank Alfalah (KAR:BAFL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨37.10, compared to a current price of ₨58.79 — trading 58.5% above its estimated fair value. The current ROE % is 22.49%, which is 49% above median its 10-year median of 15.06 and 120.1% above the Banks industry median of 10.22. Bank Alfalah's overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Bank Alfalah (KAR:BAFL), the current ROE % is 22.49% 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 Bank Alfalah (KAR:BAFL) Overvalued in 2026?
Based on GuruFocus' analysis, Bank Alfalah stock appears to be overvalued.
The current stock price of ₨58.79 is trading 58.5% above its estimated GF Value™ of ₨37.10.
GuruFocus considers Bank Alfalah to be Significantly Overvalued.
Key valuation signals for KAR:BAFL:
ROE %: 22.49% (49% above median its 10-year median of 15.06)
GF Value™: ₨37.10 vs. price of ₨58.79 (58.5% above fair value)
Industry Position: 120.1% above the Banks median (#219 of 1524)
No single metric tells the full story. See the KAR:BAFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank Alfalah Ltd is a banking company that provides financial services to retail, corporate and public sector customers. The Bank offers products and services including loans, deposits, project and trade financing, investment banking, wealth management, credit cards, auto loans, housing finance and personal loans, money market, capital market and foreign exchange operations. It also provides digital banking services through mobile app, internet banking, ATMs and contact center. The Bank operates through the segments Retail Banking, Corporate Banking, Islamic (Domestic Operations), Treasury, Digital Banking, Overseas and Others, and operates in three geographical regions namely Pakistan, Asia Pacific (including South Asia) and the Middle East.
64GF Score
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