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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:

  • Current EPS: This is the company’s Earnings Per Share, which can be found in financial statements or on investment platforms.

  • Estimated Growth Rate: You can estimate this using:

    • Company slides or earnings call presentations.

    • Tools like Finbox, which provides an average EPS Growth Forecast over 5 years.

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Enter the Values into the Calculator Below: 

  • The calculator will instantly compute the results.

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Interpret the Results:

  • Target Purchase Price: The calculated fair value of the stock.

  • 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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