Estimate the true intrinsic value of any stock using Graham Number, DCF and sector P/E methods. Identify undervalued opportunities.
Intrinsic value is the "true" worth of a stock based on its fundamentals, independent of market sentiment. Value investors like Warren Buffett buy stocks when market price is significantly below intrinsic value — creating a "margin of safety." This calculator uses three common methods: Graham Number, simplified DCF, and sector P/E comparison.
Benjamin Graham recommended buying only when market price is at least 33% below intrinsic value — this is your "margin of safety." For highly predictable businesses, 20% may be sufficient. For cyclical or uncertain businesses, 40–50% margin is prudent.
Typical sector PEs in India: PSU Banks 8–12×, Private Banks 15–25×, IT large-cap 25–30×, FMCG 40–60×, Pharma 20–35×, Auto 15–25×, Infrastructure 15–20×. Growth companies often trade at premium PEs — always compare to historical PE range, not just current sector average.
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