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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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.
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.
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.
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.
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.
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.