Intrinsic Value Calculator

It is an estimate of what a share of the underlying business is economically worth based on assumptions about future earnings or cash flows, time, and risk. It is not the current market price and cannot be observed directly.

It is the estimated business value allocated to one share. This page works per share from the start by using earnings per share, so the output can be compared with a quoted share price without a separate share-count calculation.

No. Intrinsic value is model-dependent. Change the earnings base, growth path, interest rate, cash conversion, or risk assumption and the estimate changes. A useful valuation shows that sensitivity instead of hiding it.

Market price is the amount buyers and sellers agree on now. Intrinsic value is an estimate produced from business assumptions. Price is observable; value is reasoned and uncertain.

The terms are often used loosely as synonyms, but fair value can also have a specific accounting meaning. This page avoids claiming a definitive fair value and labels its output as a Graham estimate from your assumptions.

Yes. It runs in the browser without an account, subscription, ticker lookup, or server request containing your inputs.

Positive diluted trailing-twelve-month or latest annual EPS is a practical starting point. If that period contains a material one-off or sits at a cyclical extreme, normalize it transparently before entering it and document why.

A company's income statement reports EPS. Start with the filed 10-K or 10-Q; StockAnalysis can help locate a company's financial pages, but reconcile any convenient data source with the filing and footnotes.

Begin with business drivers such as revenue growth, margins, reinvestment, buybacks or dilution, and competitive durability. Choose a first-year rate and a more mature final-year rate, then inspect whether each projected year is plausible.

Holding a high rate constant for a decade often ignores competition, market saturation, capital needs, and the law of large numbers. A fade does not guarantee realism, but it makes maturation explicit.

Graham described g as expected annual growth over roughly seven to ten years. Staying inside that horizon makes the use of his shortcut clearer and avoids pretending that a simple fade can forecast indefinitely.

Use the current Moody's Seasoned Aaa Corporate Bond Yield shown by FRED if you want the conventional revised Graham formula. The default is a dated example, so follow the link and update it when the series changes.

The original shortcut is V = EPS × (8.5 + 2g). The commonly revised version multiplies that result by 4.4 ÷ Y, where Y is the current high-grade corporate bond yield.

The calculator compounds every annual rate to find ending EPS, then calculates the single constant annual rate that reaches the same endpoint. That equivalent annual rate is used as g.

No. Berkshire defines intrinsic value as discounted cash that can be taken out of a business over its remaining life. This page uses Graham's earnings shortcut and links to a DCF for the cash-flow method.

Graham emphasized paying less than a conservatively estimated value and leaving a margin of safety. Buffett retained that discipline while emphasizing the present value of future distributable cash and the quality of reinvestment.

A discounted cash-flow model forecasts cash flows, discounts each one to today, estimates value beyond the explicit forecast, adjusts for balance-sheet claims, and divides equity value by shares. It exposes more assumptions than Graham's shortcut.

DCF is usually the more complete framework when cash flow can be estimated, but it can still produce false precision. Graham's formula is faster and easier to audit; DCF is more capable and more demanding.

It is a gap between an estimated value and the price paid, intended to leave room for analytical error and unfavorable outcomes. This calculator applies the percentage you choose; it does not prescribe a universal margin.

They shift every annual growth assumption down or up by two percentage points and rerun the same formula. They are mechanical sensitivity cases, not probabilities, forecasts, or statistical confidence intervals.

No. Graham's earnings multiplier is not meaningful with negative earnings. Use a model suited to the company's economics and do not force a positive output from a formula whose required input is absent.

Its arithmetic can be exact while its economic estimate is wrong. Accuracy depends primarily on the normalized starting figure and future assumptions, which no browser calculator can verify.

Yes. Copy link stores the input values in the URL so the same case opens again. CalcStocks does not persist the values, but anyone receiving the URL can read them.

The calculation runs in your browser and the inputs are not sent to CalcStocks. The output is educational arithmetic from your assumptions, not investment, tax, or legal advice and not a recommendation to buy, hold, or sell.