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Glossary · PSX term

Price return.

Price return measures how much a share price has moved over a period, excluding dividends and other income. It is different from total return.

Definition

Price return is calculated as ending price minus starting price, divided by starting price. It helps isolate market price movement, while total return also includes dividends and other cash distributions.

Worked example

If a stock rises from Rs. 100 to Rs. 120 over one year, its price return is 20% before considering dividends.

Related on PSX Clarity

Unrealized gain

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Price-to-earnings ratio

The price-to-earnings ratio compares a company's share price with its earnings per share. It is a valuation shortcut, not a complete investment case, and should be compared within the same sector.

Price-to-book ratio

Price-to-book ratio compares a company's market price with its book value per share. It is often used for banks, insurers, and asset-heavy PSX companies.

Payout ratio shows how much of a company's earnings are distributed as dividends. It helps investors assess whether the dividend appears conservative or stretched.

Proxy voting lets a shareholder authorise someone else to vote their shares at a company meeting.

A price band is the allowed range between the highest and lowest price a stock can trade at in a session.

Pakistan Investment Bonds (PIBs)

PIBs are longer-term government bonds issued by Pakistan, typically 3 to 30 years.

The policy rate is the benchmark interest rate set by the State Bank of Pakistan.

The PEG ratio divides the P/E ratio by the company's earnings growth rate.

Price-to-sales ratio

The price-to-sales ratio compares a company's market value to its revenue.