Financial Tools
Stock Valuation Calculator
PE, PB, DDM & Graham — four methods to estimate a stock's fair value.
Financial Data
Industry Benchmarks
Enter financial data to see valuations
⚠️ Valuation results are for reference only. Actual stock prices are influenced by market sentiment, macroeconomic factors, and more.
What Is the Stock Valuation Calculator?
"Is this stock cheap or expensive at its current price?" — a question every investor asks. The Stock Valuation Calculator uses four classic valuation methods — P/E (Price-to-Earnings), P/B (Price-to-Book), DDM (Dividend Discount Model), and the Graham Number — to estimate a stock's fair value from different angles. Using all four methods together and cross-checking is far more reliable than relying on a single metric. Enter the stock's financial data (EPS, BVPS, dividends, etc.) and the calculator shows each method's fair price estimate plus a weighted blended valuation.
Key Concepts
What Each Valuation Method Tells You
P/E (Price-to-Earnings): the most widely used, suitable for mature companies with stable earnings. P/B (Price-to-Book): best for asset-heavy industries like banking, insurance, and property. DDM (Dividend Discount Model): ideal for blue-chip stocks with consistent dividends. Graham Number: Benjamin Graham's classic formula, suited for conservative value investors. Different industries favour different methods — using several together gives the most balanced view.
A Low P/E Isn't Always a Bargain
A low P/E might mean a stock is 'cheap', but it could also mean the market expects future earnings to decline — a so-called 'value trap'. For example, a stock with a P/E of 5 might look cheap, but perhaps the market expects its earnings to collapse next year. Always consider earnings growth prospects, industry average P/E, and company fundamentals together.
Frequently Asked Questions
How do I know what a reasonable P/E is?
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⚠️ Note：The above calculations are for reference only and do not constitute financial, investment, or tax advice. Actual outcomes may vary based on individual circumstances, financial institution policies, or regulatory changes. Please consult a licensed professional before making any financial decisions.