Al Arafah Islami Bank (DHA:ALARABANK) Margin of Safety % (DCF Earnings Based): -57.68% (As of Jun. 29, 2026)


DHA:ALARABANK Al Arafah Islami Bank PLC DHA:ALARABANK
69 GF Score
Price BDT15.20
GF Value BDT16.70
Valuation Fairly Valued
! 3 Warning Signs
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What is Al Arafah Islami Bank Margin of Safety % (DCF Earnings Based)?

Al Arafah Islami Bank DHA:ALARABANK +6.29% 69 Margin of Safety % (DCF Earnings Based) is -57.68% as of Jun. 29, 2026. GuruFocus rates DHA:ALARABANK with a GF Score™ of 69/100 and a GF Value™ of BDT16.70 (Fairly Valued). The stock has 3 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-29), Al Arafah Islami Bank's Predictability Rank is 2-Stars. Al Arafah Islami Bank's intrinsic value calculated from the Discounted Earnings model is BDT9.64 and current share price is BDT15.20. Consequently,

Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -57.68%.

Al Arafah Islami Bank Margin of Safety % (DCF Earnings Based) Competitor Comparison

For the Banks - Regional subindustry, Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Al Arafah Islami Bank Margin of Safety % (DCF Earnings Based) vs Banks Industry

For the Banks industry and Financial Services sector, Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) falls into.


DHA:ALARABANK
69GF Score
Al Arafah Islami Bank PLC DHA:ALARABANK
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Al Arafah Islami Bank Margin of Safety % (DCF Earnings Based) Calculation

Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(9.64-15.20)/9.64
=-57.68 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -57.68% mean?
Al Arafah Islami Bank (DHA:ALARABANK) has a Margin of Safety % (DCF Earnings Based) of -57.68% as of Jun. 29, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Al Arafah Islami Bank.
Is Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) too high?
Al Arafah Islami Bank's current Margin of Safety % (DCF Earnings Based) is -57.68%. Overall, Al Arafah Islami Bank has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) compare to competitors?
Al Arafah Islami Bank's Margin of Safety % (DCF Earnings Based) of -57.68% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Banks company?
A good Margin of Safety % (DCF Earnings Based) depends on the Banks industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Al Arafah Islami Bank. Al Arafah Islami Bank's current Margin of Safety % (DCF Earnings Based) is -57.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Arafah Islami Bank stock overvalued right now?
Based on GuruFocus' analysis, Al Arafah Islami Bank (DHA:ALARABANK) is currently considered Fairly Valued. The stock's GF Value™ is BDT16.70, compared to a current price of BDT15.20 — trading 9% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -57.68%. Al Arafah Islami Bank's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Al Arafah Islami Bank (DHA:ALARABANK), the current Margin of Safety % (DCF Earnings Based) is -57.68% as of Jun. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Al Arafah Islami Bank (DHA:ALARABANK) Overvalued in 2026?

Based on GuruFocus' analysis, Al Arafah Islami Bank stock appears to be undervalued. The current stock price of BDT15.20 is trading 9% below its estimated GF Value™ of BDT16.70. GuruFocus considers Al Arafah Islami Bank to be Fairly Valued.

Key valuation signals for DHA:ALARABANK:

  • Margin of Safety % (DCF Earnings Based): -57.68%
  • GF Value™: BDT16.70 vs. price of BDT15.20 (9% below fair value)
  • GF Score™: 69/100 with 3 warning signs

No single metric tells the full story. See the DHA:ALARABANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Al Arafah Islami Bank Business Description

Address 63, Purana Paltan, Daynik Bangla Mor, Al-Arafah Tower, 1st & 2nd Floor, Dhaka, BGD, 1000
Al Arafah Islami Bank PLC is a Bangladesh-based company engaged in providing commercial banking, consumer banking, trade finance, and related custody and clearing services. Its deposit products include current, saving, term, and short notice deposits; and marriage savings investment schemes, among others. The principal activities of the Bank are to provide a comprehensive range of financial services including commercial banking, consumer banking, trade finance and other related custody and clearing services to the customers. Geographically, it operates only in Bangladesh. It serves Agriculture; Construction; Power, Gas, Water and Sanitary Services; Transport and communication; Trade services; Storage; Professional & Miscellaneous services and other sectors.
69GF Score

Get the complete analysis for DHA:ALARABANK

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

BDT15.20
Price
BDT16.70
GF Value