Pakistan Stock ExchangeKAR:PSX 70 ROE % is 16.15% as of Mar. 2026, which is 496% above its 10-year median of 2.71. GuruFocus rates KAR:PSX with a GF Score™ of 70/100 and a GF Value™ of ₨28.03 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 791 Capital Markets companies, Pakistan Stock Exchange ranks better than 76.61% on this metric.
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.
* 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 Financial Data & Stock Exchanges subindustry, Pakistan Stock Exchange'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.
Pakistan Stock Exchange ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Pakistan Stock Exchange's ROE % distribution charts can be found below:
* The bar in red indicates where Pakistan Stock Exchange'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.
Pakistan Stock Exchange (KAR:PSX) has a ROE % of 16.15% 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 Pakistan Stock Exchange and its competitors. This is 496% above median its historical median of 2.71. Over the past decade, Pakistan Stock Exchange's ROE % has ranged from 0.70 to 16.49. According to the industry distribution chart, Pakistan Stock Exchange ranks #185 out of 791 companies in the Capital Markets industry, placing it in the top 23.4%.
Is Pakistan Stock Exchange's ROE % too high?
Pakistan Stock Exchange's current ROE % of 16.15% is 496% above median its 10-year median of 2.71. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 16.49. The Capital Markets industry median ROE % is 6.00. Pakistan Stock Exchange's value of 16.15% is 169.2% above this industry median. Based on the distribution chart, Pakistan Stock Exchange ranks #185 out of 791 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to SPGI and CME?
According to the Capital Markets industry distribution chart, Pakistan Stock Exchange ranks #185 out of 791 companies for ROE %. This places Pakistan Stock Exchange in the top 23% of its industry — outperforming the majority of peers. The industry median ROE % is 6.00. Pakistan Stock Exchange's value of 16.15% is 169.2% above this benchmark. Historically, Pakistan Stock Exchange's own ROE % has ranged from 0.70 to 16.49 over the past decade. While the company's 10-year median is 2.71 vs. the industry median of 6.00, Pakistan Stock Exchange 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.00, based on 791 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. Pakistan Stock Exchange's current ROE % of 16.15% is 169.2% 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 Pakistan Stock Exchange and its competitors. For the Capital Markets industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan Stock Exchange's current ROE % is 16.15%, which is 496% above median its own 10-year median of 2.71. 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 ₨28.03, compared to a current price of ₨49.72 — trading 77.4% above its estimated fair value. The current ROE % is 16.15%, which is 496% above median its 10-year median of 2.71 and 169.2% above the Capital Markets industry median of 6.00. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Pakistan Stock Exchange (KAR:PSX), the current ROE % is 16.15% 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 77.4% above its estimated GF Value™ of ₨28.03.
GuruFocus considers Pakistan Stock Exchange to be Significantly Overvalued.
Key valuation signals for KAR:PSX:
ROE %: 16.15% (496% above median its 10-year median of 2.71)
GF Value™: ₨28.03 vs. price of ₨49.72 (77.4% above fair value)
Industry Position: 169.2% above the Capital Markets median (#185 of 791)
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.
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