Values the share off book value plus the present value of returns ABOVE the cost of equity — the justified price-to-book a company's ROE earns.
Sector lens · Retailing: 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.
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.
Cost of equity 7.1% (CAPM) — the hurdle the ROE must beat to add value above book.
Normalized return on equity from the multi-year average net income over book — the engine of the justified premium to book.
3.0% — long-run growth of the residual; must stay below the cost of equity.
If ROE beats the cost of equity the share is worth a premium to book; if not, a discount. This is the justified price-to-book a quality compounder earns — the right lens for high-ROE banks.
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