๐ Discounted Cash Flow (DCF) Calculator
DCF analysis stock ki real/intrinsic value calculate karta hai future cash flows ko present value mein discount karke. Agar current price intrinsic value se kam ho toh stock undervalued hai.
Intrinsic Value
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Current Price
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Margin of Safety
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Verdict
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๐ก DCF Tips
Discount Rate for Pakistan
Use 12-15% discount rate for Pakistani stocks to account for country risk, inflation and opportunity cost vs government bonds.
Margin of Safety
Warren Buffett recommends buying only when stock is at least 25-30% below intrinsic value. This is your "margin of safety".
DCF is Sensitive to Assumptions
Small changes in growth rate can dramatically change intrinsic value. Always use conservative estimates for Pakistani companies.