Fair Value Calculator – How to Calculate a Stock's Fair Value (PSX)

Stock (optional)

Current market price (Rs., optional)

Pick a stock above to fill in its previous close, or type any price. End-of-day prices, not live.

Earnings per share (EPS)

Company's earnings per share for the last 12 months (or expected). Find in financial statements. How to read an annual report.

EPS Growth Rate (%)

Expected annual earnings growth for the next few years. High-growth companies may have 50%+.

Growth Period (years)

Number of years you expect the above growth rate to continue.

Long-term Growth Rate (%)

Stable growth rate after the initial period (usually lower).

Discount Rate (%)

Reflects risk – typical values 15–40%. Higher risk = higher discount rate. Not sure? Work it out with the CAPM Calculator.

How This Is Calculated

Discounted Cash Flow (DCF) estimates the present value of a stock's expected future earnings. Earnings per share are projected forward at your growth rate for the growth period, then at a lower long-term growth rate forever after (the "terminal value"), and every future year's EPS is discounted back to today's rupees using the discount rate.

If the calculated fair value is above the current market price, the stock may be undervalued; if it's below, the stock may be overvalued relative to these assumptions. Learn more about valuation →

Fair value calculator: questions and answers

What is a fair value calculator?

A fair value calculator estimates what a share is worth from the company's earnings, growth and risk, so you can compare it with the market price. This one projects earnings per share forward, adds a terminal value and discounts it all back to today.

Is a fair price calculator the same thing?

Yes. "Fair price", "fair value" and "intrinsic value" are used for the same idea: an estimate of what a stock should cost, to compare with what it costs today.

What do I need to use it?

The company's earnings per share (from its annual or quarterly report), the growth rate you expect, a lower long-term growth rate, and the return you require. Choosing a stock fills in its last closing price.

How accurate is the result?

It is only as reliable as your assumptions. Small changes in growth or the required return move the answer a lot, so try a few combinations and cross-check with another method.

New to the idea? Read our guide: How to calculate the fair value of a stock, with a worked example.

Test your valuation: buy the stock in the simulator with Rs. 10 lakh and see if the market agrees. Free, no real money.

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This tool is for educational purposes only and does not constitute financial advice. Real valuations depend heavily on the assumptions you provide – always cross-check with other methods and your own research. All Tools.

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