Projects free cash flow forward, discounts it to today, adds a perpetuity (terminal) value, nets off debt, and divides by shares.
Sector lens · : Fair value blends a cash-flow (DCF), a dividend (DDM) and a book-value (Graham) lens; methods that don't fit the company are dropped automatically.
N/A — Free cash flow is non-positive — DCF not meaningful.
Reference metrics from the latest statements — use them to judge whether a fair value is realistic.
A fair value implying a price-to-book far above the company's ROE would justify is usually a model artifact, not an opportunity.
Drag to see how your view changes the value.
WACC 4.86% — cost of equity 4.9% (Rf 4.5% + β 1.00 × ERP 6.0%) blended 100%/0% with after-tax debt 0.0%.
8.0% — default (insufficient revenue history).
3.0% — long-run nominal GDP/inflation; a perpetuity can't outgrow the economy.
5y — scaled to franchise size (mega-cap ≥ SAR 100B → 20y, large ≥ 10B → 15y).
A higher discount rate (more conservative) or lower growth lowers the value. Terminal growth must stay below the discount rate.
Fair value blends the valid methods by their median to exclude outliers. Your tweaks here are local — the company's stored defaults are unchanged.
This is not financial advice or a recommendation to buy or sell. Fair-value figures are model estimates from public data and assumptions that can be wrong — do your own due diligence before any decision to buy or sell a stock. hala@hajaris.com