Calculate Fair Value of a Pakistani Stock using Discounted Cash Flow

Fair Value Calculator

Discounted Cash Flow Method

Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows. DCF analysis finds the present value of expected future cash flows using a discount rate. A present value estimate is then used to evaluate a potential investment. If the value calculated through DCF is higher than the current cost of the investment, the opportunity should be considered.

Calculate

Earnings per share (EPS)

Enter company's Earning Per Share for the last 12 months or expected 12-month earnings per share. You can find earning per share information in the company's latest financial statements.

Rs.

EPS Growth Rate

Enter a percentage amount of earning growth rate that you expect the company will post for the next few years. This is one of the most important factors in calculating the fair value of any company. A value of 0 means no growth (or constant earnings) in the next few years. Very high growth companies may have 50% earnings increase per year.

For How many years?

Type number of years that you expect the growth entered in previous field will continue.

Long-term Growth Rate

Enter a percentage amount of earning growth rate that you expect the company will post in long term. This is usually less than the initial years' growth rate, because companies grow rapidly in early years and then their earnings become stable. A value of 0 means you no growth is expected in the long term.

Discount Rate

This factor is also very important in estimating the fair value. This rate depends upon many factors, including risk free rates, market conditions, volatility of the particular stock, debt/equity ratio of the company, and other risk related measures. Typical values are between 15 and 40. The more the risk, the higher this discount rate value.

Random Financial Term

Inventory Turnover Ratio

What you Need ?

Income Statement, Balance Sheet

Formula

Inventory Turnover Ratio = Costs of Goods Sold / Average Inventory

Meaning

If the company you're analyzing holds has inventory, you want that company to be selling it as fast as possible, not stockpiling it. The inventory turnover ratio measures this efficiency in cycling inventory. By dividing costs of goods sold (COGS) by the average amount of inventory the company held during the period, you can discern how fast the company has to replenish its shelves. Generally, a high inventory turnover ratio indicates that the firm is selling inventory (thereby having to spend money to make new inventory) relatively quickly.

Top Players

Based on 2020-02-27 data

Player	Profit
Ahsan Jutt Bahawalpur, Pakistan	+13.3%
Hyder Ali Nawabshah, Pakistan	+13.2%
Hafiz Rashid Karachi, Pakistan	+10.1%
zahdan nasar Faisalabad, Pakistan	+10.0%
Mujeeb Abbottabad, Pakistan	+9.5%