About this Calculator
$Calculate Intrinsic Value, Graham Number, NAV discounts, and Debenture Yields. Select the relevant tab to perform precise calculations based on current Nepal Stock Exchange (NEPSE) and SEBON regulations.
Features
- 100% mathematically accurate calculations
- Up-to-date with SEBON & NEPSE broker tiers
- Instant client-side performance
- No data sent to server (100% private)
Fundamental Valuation Models for NEPSE Stocks
Table of Contents
1. Calculating Benjamin Graham's True Value
Value investing in the Nepal Stock Exchange (NEPSE) demands an objective evaluation of a company's intrinsic worth. The Graham Number, devised by Benjamin Graham (the mentor of Warren Buffett), is one of the most reliable mathematical models to determine if a stock is overvalued or undervalued.
Our Graham Number Calculator combines a company's Earnings Per Share (EPS) and Book Value Per Share (BVPS) to output its maximum defensive price. By comparing this theoretical value to the Last Traded Price (LTP) on NEPSE, investors can build a portfolio anchored in true fundamental safety margins.
2. NAV Discount and Premium in Mutual Funds
Nepalese mutual funds are required to publish their Net Asset Value (NAV) on a weekly and monthly basis. However, closed-end mutual funds rarely trade at their exact NAV on the secondary market.
The NAV Premium/Discount Calculator reveals the exact percentage gap between a fund's intrinsic asset value and its market price. A heavy discount often signals a high-yield opportunity when the fund approaches maturity, converting market irrationality into guaranteed arbitrage profits.
3. Secondary Market Debenture Yields
With numerous commercial banks issuing corporate debentures carrying 8.5% to 11% coupon rates, the secondary market often sees these bonds trading below their Rs. 1,000 par value.
The Debenture Yield to Maturity (YTM) Calculator provides the exact annualized return an investor will achieve by holding the discounted bond until maturity, factoring in both the fixed interest payouts and the capital gain at redemption.
4. Frequently Asked Questions (FAQ)
What is the formula for the Graham Number?
The Graham Number is mathematically calculated as: Square Root of (22.5 × EPS × Book Value). The multiplier 22.5 assumes a P/E ratio under 15 and a P/B ratio under 1.5.
Why do mutual funds trade at a discount in NEPSE?
Closed-end mutual funds lack liquidity, meaning investors cannot redeem units directly with the fund manager until maturity. This illiquidity forces them to sell at a discount on the secondary market.
Is Debenture Yield to Maturity (YTM) guaranteed?
Yes, provided that the issuing commercial bank does not default, the YTM calculated at your specific purchase price is mathematically locked in until the debenture matures.