Intrinsic Value Calculator
Calculate Intrinsic Value
Choose a model, enter your assumptions, and compare the result with the current share price.
Benjamin Graham Formula. A classic shortcut for growth stocks: earnings times a growth multiplier, adjusted for prevailing bond yields.
Fill in every field with valid numbers first.
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How to use the intrinsic value calculator
Start by choosing the valuation model that best fits the company. Enter assumptions carefully and use inputs that you can explain. The calculator is designed to make the arithmetic easier; it does not remove the uncertainty from the assumptions.
How to interpret the result
Compare the estimated intrinsic value with the current market price. If the estimate is above the market price, the stock may appear undervalued under your assumptions. If it is below the market price, it may appear overvalued. Neither conclusion is a prediction or a recommendation to buy or sell.
Example margin of safety
If your estimated intrinsic value is $120 and the market price is $90, the gap is $30. Expressed as a percentage of intrinsic value, the margin of safety is 25%.
Important limitations
- Future earnings, dividends and cash flows can differ from forecasts.
- Discount rates and growth assumptions can have a large effect on valuation.
- One model may not fit every business.
- Market prices can remain above or below an estimated intrinsic value for long periods.
For better decision-making, test conservative, base and optimistic assumptions. Review the underlying financial statements and consider qualitative factors such as competition, debt, management, cyclicality and business durability.