Question 1

What is P/E ratio and how is it used to screen stocks?

Accepted Answer

The P/E (Price-to-Earnings) ratio shows how much investors pay per rupee of earnings. A low P/E (under 8x for PSX) may indicate an undervalued stock. High P/E (above 20x) often reflects growth expectations.

Question 2

What is a good dividend yield for PSX stocks?

Accepted Answer

A dividend yield of 3–6% is considered attractive on PSX. Banking stocks (MCB, ABL, HBL) and energy stocks (OGDC, PPL, FFC) tend to offer the highest consistent yields.

Question 3

What does ROE mean in stock analysis?

Accepted Answer

ROE (Return on Equity) measures how efficiently a company uses shareholder capital to generate profits. An ROE above 20% is generally considered strong. MCB Bank and FFC consistently show ROEs above 25%.

Question 4

How do I find undervalued stocks on PSX?

Accepted Answer

Use the screener to filter stocks with low P/E (under 8x), low P/B (under 1x), and high dividend yield. Compare against the sector average. Always review company fundamentals before investing.

Stock	Sector	Price (PKR)	Change%	P/E	P/B	ROE%	Div/Share	Mkt Cap	Volume	52W Range

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