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Ten Cap Calculator

This tool helps you calculate the Ten Cap price of a company, a method inspired by Warren Buffett to estimate the value of a stock based on its owner earnings. The calculator is embedded directly on this page, making it easy to input your data and get instant results.

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How to Use This Calculator

Find the Required Inputs:

  • Cash from Operations: Found in the company’s cash flow statement.

  • Capital Expenditures (CapEx): Listed in the cash flow statement.

  • Tax Provision (or Income Tax Expense): Found in the income statement.

  • Shares Outstanding: Found in the company’s balance sheet or investor reports.

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If you’re using Finbox, you can find these metrics in seconds. Note that Tax Provision is listed as Income Tax Expense on Finbox.

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Enter the Values into the Calculator Below:

  • The calculator will compute the Ten Cap price instantly.

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Understand the Results:

  • Ten Cap Price (with 50% Discount): The calculator already applies a 50% discount to the calculated price, so the result is the discounted price you should aim to pay for the stock.

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Why Use the Ten Cap Method?

The Ten Cap method focuses on a company’s owner earnings to determine its value, ensuring that you only buy stocks that offer a strong annual return (ideally 10% or higher). By including a 50% discount in the calculation, this method also builds in a margin of safety, reducing your risk.

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Start Your Analysis

Use the calculator below to analyze stocks and find a safe price to invest in. Refer to the instructions above if you’re unsure about the inputs.

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