Video guide
Multi-Factor Margin Matrix

Stock Margin Analyzer

Judging a PSX stock on one ratio can be misleading — a cheap P/E might come with weak profitability, or a strong dividend might mask a thin balance sheet. This scorecard combines eight financial ratios across valuation, income, profitability, and solvency into a single 0-100 composite score, so you get a rounded read on a stock rather than one number in isolation.

Start your analysis

Enter The Stock Symbol

Select a symbol. We will load its current price, choose the correct matrix and populate every available ratio.

Select Sector Matrix
x
Price to Earnings ratio
x
Price to Book Value ratio
x
Enterprise Value multiplier
%
Annual dividend return %
%
Dividend / Earnings payout %
%
ROE profitability tier
%
Total Debt / Equity tier %
%
Year-over-Year sales growth %
Filled 0/8 metrics to complete matrix

Why Banking Stocks Need a Different Margin Analysis on the PSX

Most fundamental analysis tools apply the same ratios to every company, but this breaks down for banks. A manufacturer or service company earns profit through cost of goods sold and gross margins — a bank instead earns money through its net interest margin (NIM) and the spread between what it pays on deposits and what it earns on loans, both heavily influenced by SBP policy rates. Metrics like EV/EBITDA or Debt to Equity — perfectly reasonable for a standard PSX stock — become misleading when applied to a bank, since debt is a bank's raw material, not a red flag. That is exactly why this PSX margin calculator lets you toggle between a Standard matrix and a dedicated Banking matrix, swapping in sector-appropriate metrics like Capital Adequacy Ratio (CAR) and Net Interest Income growth so your banking stock margin analysis actually reflects how banks make money.

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FAQs

Frequently Asked Questions

What is a stock margin analyzer or equity scorecard?

A stock margin analyzer (also called a multi-factor equity scorecard) scores a company across several financial dimensions — valuation, income, profitability, and solvency — and combines them into a single 0-100 score. This tool applies that approach specifically to Pakistan Stock Exchange (PSX) listed companies using eight weighted financial ratios.

Which financial ratios does this PSX stock analyzer use?

For standard (non-bank) stocks it uses P/E Ratio, P/BV Ratio, EV/EBITDA, Dividend Yield, Payout Ratio, Return on Equity (ROE), Debt to Equity, and Sales Growth YoY. For banking sector stocks the ratios are swapped for sector-appropriate metrics — see the next question.

How is the total score out of 100 calculated?

The score is built from four weighted sub-scores — Valuation, Income & Dividends, Profitability (ROE), and Solvency & Growth — each derived from your entered ratios. The sub-scores are then combined using fixed weightings into a single composite score out of 100, with a star rating and undervalued/fair/overvalued label attached.

Is there a separate scoring model for bank stocks on PSX?

Yes. Switching the toggle to "Banks" replaces general metrics like EV/EBITDA and Debt to Equity with banking-specific ones — Capital Adequacy Ratio (CAR) and Net Interest Income Growth — since standard corporate ratios don't apply well to financial institutions.

What is considered a good P/E or P/BV ratio for PSX stocks?

In this tool's scoring model, a P/E Ratio under 10 and a P/BV Ratio under 1.0 score the highest (5/5), reflecting cheaper relative valuation. These thresholds are general starting points — always compare a stock's ratios against its own sector peers on the PSX rather than a single fixed number.

Can this tool be used to compare two PSX stocks side by side?

Yes — run the calculator once per stock using its own ratios (available via the Quick Lookup search), note each total score and category breakdown, then compare the results manually. The scorecard format makes it easy to see exactly where one company outperforms another, such as profitability versus solvency.

Can you walk through an example of using this scorecard?

Say a PSX company shows a P/E of 8, P/BV of 0.9, dividend yield of 6%, payout ratio of 45%, ROE of 18%, and debt-to-equity of 40%. Valuation and Income & Dividends both score highly on figures like these, Profitability lands solid given the healthy ROE, and Solvency & Growth comes in moderate depending on the sales growth entered. The composite typically lands in the 70s — a stock that looks attractively priced with decent income and profitability, but worth a closer solvency check before finalizing a decision.

What common mistakes should I avoid when using this scorecard?

The most common mistake is comparing a bank's score directly against a standard company's score — they use different metrics entirely (CAR and NII growth versus EV/EBITDA and debt-to-equity), so the numbers aren't on the same scale. Another is treating this composite score as a full replacement for the Stock Health Analyzer or Fair Value Calculator — it's a broad screening tool, and a weak Solvency & Growth sub-score specifically warrants a deeper look with the Health Analyzer before you act on it. And always check the reporting period on your input data; ratios from a stale filing can skew the whole score.

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