Methodology

• Traceable. Every calculator shows its formula and the inputs it used, and every worked example on the site can be checked by hand.
• No guessing. SeekhKar does not publish prices, ratios or valuations for listed companies that it cannot date and source, and never fills gaps with estimates or placeholders.
• Models, not advice. Each model is a lens with known weaknesses. A stock trading below a model value is not a recommendation to buy it.

Graham Number = √(22.5 × EPS × BVPS)

Benjamin Graham suggested a defensive investor should pay no more than 15 times earnings and 1.5 times book value; 15 × 1.5 = 22.5. The Graham Number is the price at which a stock sits exactly on both limits.

Applies to: profitable, asset-backed companies (for example cement, fertilizer, oil and gas).

Not defined when EPS or book value per share is zero or negative; SeekhKar shows "Not calculated" instead of a number.

Limitations: it ignores growth, intangible assets and the quality of earnings, and it uses a single year's EPS. It is a screen, not a price target.

Margin of safety = (Intrinsic value − Price) ÷ Intrinsic value × 100

A positive margin means the price is below the model value; a negative margin means it is above. The calculators let you choose the margin used for the "buy-below" price (default 25% for the Graham Number and DCF models; the DDM uses a fixed 25%).

Years 1–5:  FCFₜ = FCFₜ₋₁ × (1 + g₁)
Years 6–10: FCFₜ = FCFₜ₋₁ × (1 + g₂)
Terminal value = FCF₁₀ × (1 + g) ÷ (r − g)
Intrinsic value = Σ FCFₜ ÷ (1 + r)ᵗ + Terminal value ÷ (1 + r)¹⁰

The Intrinsic Value calculator uses a two-stage model on free cash flow per share. Defaults: stage-one growth 15%, stage-two growth 8%, terminal growth 4%, discount rate 18%.

Discount rate. A discount rate in the high teens reflects Pakistan's comparatively high interest rates plus an equity risk premium. The 18% default is SeekhKar's assumption, not a published market rate: adjust it to current government security yields and your own required return.

Guardrails: the discount rate must exceed terminal growth, stage-two growth cannot exceed stage-one growth, and terminal growth is capped at 6%.

The standalone DCF Calculator is simpler: one growth period, a terminal value with 3% perpetual growth, and separate discount rates for the growth and terminal stages.

Limitations: the result is very sensitive to the discount rate and terminal growth. Small input changes produce large value changes, so treat the output as a range.

Forward EPS = EPS × (1 + growth)
Fair value  = Forward EPS × sector P/E   (averaged with Forward EPS × historical P/E when given)

The model labels a stock "undervalued" when the price is at or below 75% of the blended fair value and "overvalued" when it is above the fair value. Defaults: growth 10%, sector P/E 8x, historical P/E 10x.

The calculator offers these sector P/E presets. They are SeekhKar editorial assumptions, not live market medians:

D₁ = D₀ × (1 + g)
Value = D₁ ÷ (r − g)

The Gordon growth model values a share as the present value of dividends growing at a constant rate forever. Defaults: dividend growth 5%, required return 18%. The required return must exceed the growth rate.

Applies to: companies with a steady dividend record. It is unsuitable for companies that pay irregular dividends or none.

Fair P/E   = growth rate (as a whole number)
Fair value = EPS × growth rate
PEG        = P/E ÷ growth rate

Peter Lynch argued a growing company is fairly valued when its P/E equals its growth rate (PEG of 1). SeekhKar's calculator labels PEG of 0.5 or less as deeply undervalued, up to 1 as undervalued, up to 1.5 as fairly valued, up to 2 as overvalued, and above 2 as significantly overvalued.

Limitations: it relies on a growth estimate that may not last, and it is a poor fit for cyclical or slow-growing companies.

Each sector guide suggests the valuation models that suit the sector's businesses, with a required return and growth rate to start from in the calculators. Two of these models are described only here:

Justified P/B = (ROE − g) ÷ (r − g),  ROE = EPS ÷ BVPS,  value = justified P/B × BVPS
Two-stage DCF = FCF per share grown at g₁ (years 1–5) and g₂ (years 6–10), discounted at r,
                plus a terminal value FCF₁₀ × (1 + g_t) ÷ (r − g_t) discounted from year 10

Financials: Banks and other financials hold mostly financial assets and liabilities. Their value depends on return on equity relative to the cost of equity, and on dividends. "Free cash flow" is not meaningful for them and the Graham Number ignores leverage, so both are excluded.

Asset-heavy: Plant-intensive businesses whose book value is mostly tangible assets. The Graham Number (earnings and book value together) and P/E against the sector median suit them; cyclical earnings make long DCF projections unreliable.

Cash-generative: Businesses with relatively steady free cash flow and assets that book value understates (brands, software, reserves). A DCF on free cash flow per share and P/E against the sector median suit them.

Dividend payers: Mature businesses that distribute most of their earnings. The dividend discount model is the primary lens, cross-checked with an asset- or cash-based model.

These are SeekhKar editorial assumptions, not market data. Test higher and lower values: small changes in the required return or growth rate move a valuation a lot.

Sector pages show the editorial reference ranges below for comparison. They are SeekhKar assumptions for orientation only, not calculated from market data: to compare a company, work out its own ratios from today's price and its latest report.

Bank balance sheets are mostly financial assets and liabilities, and their earnings depend on interest-rate spreads and credit losses. The Graham Number and DCF are weak guides for banks: book value is the main asset, and "free cash flow" is not meaningful in the usual sense.

For banks, price-to-book compared with return on equity (the justified P/B model above), and the dividend discount model, are more useful.

• Cost basis: weighted average cost by default, or FIFO (first in, first out) if you choose it. The method only changes how gains split between realised and unrealised; total profit is the same.
• Fees (commission and other charges) are added to the cost of a purchase and deducted from the proceeds of a sale.
• Bonus shares add quantity at zero cost, lowering the average cost. A split multiplies quantity and leaves total cost unchanged.
• Unrealised P&L, dividend suggestions and the KSE-100 comparison need end-of-day prices, which SeekhKar does not currently publish, so they show "not available" rather than a guessed value. Realised profit, cost basis and dividends you record work without them.

These figures are for record-keeping and may differ from your broker's statement or NCCPL's capital gains computation.

The Income Tax, Salary and Take Home Pay calculators use versioned slab tables transcribed from the law, currently FY 2026-27 (Tax Year 2027), with the previous year selectable. Each table lists its legal source and the date it was last checked.

Taxable income = Gross income − Zakat paid (section 60)
Slab tax       = Fixed amount + Rate × (Taxable income − Slab floor)
Surcharge      = Rate × Slab tax, where the law applies one (section 4AB)
Tax credits    = (Slab tax ÷ Taxable income) × eligible donations (s.61, ≤30%) or pension contributions (s.63, ≤20%)
Total tax      = Slab tax + Surcharge − Tax credits

Assumptions: tax credits are computed on the slab tax before surcharge; exempt allowances, final and separate-block taxes (dividends, profit on debt, capital gains), minimum taxes and withholding adjustments are not modelled.

• Every model simplifies. Different models can give very different values for the same company.
• Outputs are only as good as their inputs. Reported earnings can include one-off items that make a single year unrepresentative.
• Data can contain errors. If you spot one, please report it; corrections are listed in the Update Log.
• Nothing on SeekhKar is investment advice or a recommendation to buy or sell any security.