Finance

Intrinsic Value Calculator

Estimate the fair value of a stock using earnings-based DCF and margin of safety.

Current EPS ($)

Expected EPS Growth (%/yr)

Discount Rate (%)

Terminal P/E Multiple

Projection Years

Current Stock Price ($)

Margin of Safety (%)

Buffett recommends 25-50%

Method:
Future EPS = Current EPS × (1+g)^n
Future Price = Future EPS × Terminal P/E
Intrinsic Value = Future Price / (1+r)^n
Buy Below = IV × (1 − Margin of Safety)

Value Investing Approach

Intrinsic value represents what a stock is truly worth based on its future earnings potential. If the market price is below intrinsic value (with a margin of safety), it may be a good buy.