Fair Value Calculator
Estimate the intrinsic value of a stock using transparent earnings multiples or discounted cash flow (DCF) parameters — and evaluate current market margins.
Valuation Assumptions
Understanding Stock Valuation Parameters
Multiple Valuation: Projects simple intrinsic value using earnings per share multiplied by sustainable peer industry P/E ratios.
DCF Framework: Discounts 5 years of projected free cash flows plus terminal value back to present value using WACC cost of capital.
Margin of Safety: Benjamin Graham’s core principle requiring a purchase price discount to protect against operational forecast errors.
How This Diagnostic Works
Two Transparent Frameworks
Choose between earnings multiplied by target P/E for quick operational checks, or a 5-year Discounted Cash Flow (DCF) for deeper intrinsic analysis. Both run strictly on parameters you input.
Indicative Sector Standards
Selecting a sector auto-populates historical baseline growth rates and target multiples. These serve as starting reference points only and remain fully customizable to match your investment thesis.
Educational Diagnostic
This calculator produces mathematical estimations based entirely on user assumptions. It does not constitute formal research, stock tipping, or a direct buy/sell recommendation.
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