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Find out what a Sri Lankan stock is really worth

A share price tells you what the market is paying today. Fair value, also called intrinsic value, tells you what the company is actually worth. Our free Sri Lanka stock fair value calculator covers 270+ companies listed on the Colombo Stock Exchange (CSE). Search a company, and it picks the right valuation method for that business — DCF, P/E or NAV — and sets the inputs for you.

Search any CSE company

Type a name like Dialog or a symbol like JKH. Live price, market cap and 52-week range load instantly.

The right method, picked for you

Banks are valued on book value, telecoms on cash flow, consumer companies on earnings. The calculator matches the method to the sector.

One number from you

Sector-based assumptions are pre-filled. Enter one figure from the company's latest report and see the fair value.

How the fair value calculator works

1

Search the company

Pick any CSE-listed stock. The calculator pulls its live price and share count from the CSE.

2

Get the recommended method

Based on the company's sector, it recommends DCF, P/E or NAV and explains why that method fits.

3

Enter one figure

Free Cash Flow, EPS or Total Equity, from the latest quarterly report. Every other input is pre-filled and adjustable.

4

Compare with the price

See the intrinsic value, your buy price after the margin of safety, and whether the stock looks undervalued or overvalued.

Three valuation methods, matched to the business

DCF

Discounted Cash Flow

Adds up the cash the company will generate in future, in today's money.

Used forTelecom, power & renewable energy, beverages & tobacco
You enterFree Cash Flow (TTM)
P/E

Price-to-Earnings

Values the share as a multiple of its yearly profit, with a PEG option based on growth.

Used forFood & consumer staples, healthcare, manufacturing, services and most other companies
You enterEPS (TTM)
NAV

Price-to-Book

Values the share against the company's net assets — what it owns minus what it owes.

Used forBanks, finance, insurance, conglomerates, property, plantations and hotels
You enterTotal Equity

Starting assumptions the calculator uses

Discount rate (DCF)
15%
The yearly return you want in LKR. Raise it for riskier companies.
Terminal growth (DCF)
2–3%
Growth assumed forever after year 10. Keep it low — no company outgrows the economy forever.
Margin of safety
20–25%
A buffer below fair value in case your estimates are too optimistic. Raise it for less certain businesses.
Target P/E
7–12x
Lower for banks and cyclical industries, higher for steady consumer and healthcare companies.
Target P/B
0.8–2.0x
1.0x for banks; 0.8x for holding, property, plantation and hotel companies, which usually trade below book value.
FCF growth (DCF)
3–6%
Yearly cash flow growth for the first 10 years, set by sector. Check the company's past growth.

These are sector starting points, not recommendations. Change any of them in the calculator.

Frequently asked questions

What is the fair value of a stock?

Fair value (also called intrinsic value) is what a stock is actually worth, based on the company's cash flow, earnings or assets — not on its current market price. Comparing the two tells you whether a stock looks undervalued, overvalued or fairly priced.

Which valuation method does the calculator use?

It offers three: Discounted Cash Flow (DCF), Price-to-Earnings (P/E) and Net Asset Value (NAV, using Price-to-Book). When you search a company, it recommends the one that suits that company's sector. You can still switch to either of the other two.

How does it choose the method for each company?

Each CSE company is grouped by what its business actually does, and each group has a method that suits it:

  1. NAV for banks, finance, insurance, conglomerates, investment companies, property, plantations and hotels — their value sits in their assets, or their profits swing too much for P/E.
  2. DCF for telecom, power and beverages & tobacco — steady, predictable cash flows.
  3. P/E for food, healthcare, manufacturing, services and most other companies — earnings are the clearest yardstick.

What figure do I need to enter?

Just one, from the company's latest financial reports on the CSE website: Free Cash Flow (TTM) for DCF, EPS (TTM) for P/E, or Total Equity for NAV. TTM means trailing twelve months — the total of the last four quarters. Price, share count and market cap are filled in automatically.

How does the DCF calculation work?

  1. It projects free cash flow for each year of the projection period (10 years by default), using your growth rate.
  2. It discounts each year's cash flow back to today's value, using your discount rate.
  3. It adds a terminal value for all cash flows after the projection period, using your terminal growth rate.
  4. It divides the total by the number of shares to get the intrinsic value per share.
  5. It applies your margin of safety to get a buy price, and compares both with the market price.

How do the P/E and NAV methods work?

P/E: intrinsic value = EPS × target P/E. With the PEG option, the fair P/E equals the company's earnings growth rate (Peter Lynch's rule of thumb).

NAV: net asset value per share = total equity ÷ shares outstanding. Intrinsic value = NAV per share × target P/B. A target of 1.0x means paying exactly what the company's net assets are worth on paper.

What is free cash flow?

Free cash flow is the cash a company generates from its operations after capital expenditure (money spent on assets like buildings and equipment). Find operating cash flow and capital expenditure in the company's cash flow statement, then subtract one from the other.

What is a margin of safety?

Estimates rarely match what actually happens. A margin of safety is a buffer below fair value, so you only buy at a price that still works if things go worse than expected. The calculator starts at 25% for DCF and P/E and 20% for NAV. Raise it for businesses you're less sure about.

Are the pre-filled assumptions right for every company?

No. They are sector starting points, set conservatively, so beginners have a sensible place to begin. A fast-growing company may deserve a higher multiple than its sector, and a weak one a lower one. Review every assumption before relying on the result.

Is the result a buy or sell recommendation?

No. The results are educational estimates, not financial advice, a guarantee, or a recommendation to buy or sell any security. Markets, company performance and the economy can change in ways no model predicts. Update your inputs with the latest financial data, and speak to a qualified financial advisor before making investment decisions.

Ready to value a CSE stock?

Search a company, enter one figure, and see its fair value in under a minute. It's free.

Try the fair value calculator

All results are illustrative estimates for educational purposes only and do not constitute financial advice. Sector assumptions are starting points set by Growclub Research.

FAQ

Most frequent questions and answers

Fair value is the intrinsic value of a stock, representing what it’s actually worth based on its financials, growth potential, and market conditions, rather than just its current market price. It helps investors determine whether a stock is undervalued, overvalued, or fairly priced.

The growth rate is the expected growth rate of the company. You can find it from the historical data. 

(Suggested rate 10-15%)

The discount rate is the expected discount rate of the company. Which you expect to project. You can assume it as your “Expected annualized return from the Stock”

(Ideal rate 15-25%)

Free cash flow is the cash generated for operational activities, excluding capital expenditure. You can find this in the “Cash flow statement” of the company.

Present calculations often differ from the future. To overcome this having a margin of safety to value a stock gives a buffer to increase your odds of picking at the right price.

(Ideal rate 30-50%)

This calculator estimates a stock’s fair value using a Discounted Cash Flow (DCF) model. The most accurate but complex method. It projects the company’s free cash flow for 10 years at a user-defined growth rate, discounts these future cash flows to their present value using a specified discount rate, and adds a terminal value representing cash flows beyond the 10-year period.

The intrinsic value is divided by the total outstanding shares to derive a fair value per share. A margin of safety is applied to account for uncertainties, providing an adjusted fair value. The result compares this adjusted value to the current market price to evaluate overvaluation or undervaluation.

This tool provides an illustrative estimate based on assumptions about growth rates, discount rates, and future cash flows. 

 

These inputs are subjective and may not reflect actual outcomes, as market conditions, company performance, and macroeconomic factors can change unpredictably as past performance and model outputs do not guarantee future results.

NO! The results are not financial advice, guarantees, or recommendations to buy/sell securities. 

Users should update inputs regularly with the latest financial data and consult a qualified financial advisor before making investment decisions.

Unlock Smarter Investing in the Sri Lankan Stock Market with Our Fair Value Calculator

Are you navigating the Colombo Stock Exchange (CSE) and wondering if a stock is truly worth its price?  Making informed investment decisions in the Sri Lankan stock market requires understanding a stock’s fair value.

 

What is Fair Value and Why Does it Matter for Sri Lankan Investors?

Fair value is essentially the intrinsic worth of a stock, based on its fundamentals.  Knowing the fair value helps you identify Undervalued Stocks by Spot opportunities to buy quality CSE stocks at prices below their actual worth,  Avoid Overvalued Stocks to Prevent paying too much for a stock that might be trading higher than it deserves. Also Make Confident Investment Decisions which Gain a clearer picture of a stock’s potential before you invest in the Sri Lankan market.

 

Introducing the GrowClub.lk Sri Lanka Stock Fair Value Calculator – Your Free Tool for Smarter Investing

We’re excited to offer Sri Lankan investors like you a brand new, completely free tool to simplify stock valuation! The Growclub Research’s Sri Lanka Stock Fair Value Calculator is designed to help you quickly estimate the fair value of CSE-listed stocks.

 

Why Use Our Calculator?

Specifically for the Sri Lankan Market  Tailored to the nuances of the CSE. Easy to Use and Simple inputs for quick results – no complicated financial jargon needed. Empower Your Investment Decisions and Get a valuable data point to guide your stock choices in Sri Lanka.

 

Ready to Calculate Fair Value?

[Try the Sri Lanka Stock Fair Value Calculator Now! ]

Start using Growclub Research’s Fair Value Calculator today and take a more informed approach to your Sri Lankan stock market investments!