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Margin of Safety Calculator
This tool helps you calculate the intrinsic value of a stock using the Margin of Safety method. It’s a powerful way to determine whether a stock is undervalued and a good candidate for investment. With the calculator embedded directly on this page, you can quickly input your data and get the results.
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How to Use This Calculator
Find the Inputs:
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Current EPS: This is the company’s Earnings Per Share, which can be found in financial statements or on investment platforms.
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Estimated Growth Rate: You can estimate this using:
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Company slides or earnings call presentations.
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Tools like Finbox, which provides an average EPS Growth Forecast over 5 years.
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Enter the Values into the Calculator Below:
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The calculator will instantly compute the results.
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Interpret the Results:
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Target Purchase Price: The calculated fair value of the stock.
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Suggested Current Stock Price (with 50% Margin of Safety): This is the price at which you should consider buying the stock.
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Why Use a Margin of Safety?
The Margin of Safety ensures that you invest in stocks at a significant discount to their intrinsic value, reducing the risk of overpaying and providing a buffer against potential inaccuracies in your assumptions or market volatility.
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Start Calculating
Use the calculator embedded below to begin your analysis and determine a safe and reasonable price for your next investment.
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