In this section, you’ll find calculators designed to help you analyze and evaluate stocks, similar to the methods I use in my own analysis. While investing involves more than just calculations, these tools can give you a clearer picture of what price might be advantageous when buying stocks.

​

There are three calculators available, each focusing on a different metric. To gain a well-rounded understanding of a stock, I recommend using all three calculators for your analysis.

​

​

1. Margin of Safety Calculator

This calculator helps you determine the intrinsic value of a company and apply a margin of safety to minimize risk. A margin of safety ensures that you only buy a stock when it’s significantly undervalued. For example:

​

• If the intrinsic value of a stock is $100, aim to buy it at $50 with a 50% margin of safety.

​

​

​

​

​

2. Ten Cap Calculator

The capitalization rate (cap rate) measures the annual return (owner earnings) a business generates based on its current purchase price. Warren Buffett often uses this method to evaluate investments. Ideally, the cap rate should be at least 10% to ensure a strong return.

​

​

​

​

​

3. Payback Time Calculator

The payback time calculation helps you estimate how long it will take to recover your investment through compounded growth. A good rule of thumb is to aim for a payback period of 8 years or less, ensuring a faster return on your investment.

​

​

​

​

​

How to Use These Calculators

1. Select the calculator that aligns with the metric you want to evaluate.

2. Enter the required inputs (e.g., earnings, growth rates, or free cash flow).

3. Compare the results across all three calculators to make an informed decision.

​

​

Get Started

These tools are designed to simplify your investing journey and empower you to make better financial decisions. Explore the calculators and start analyzing stocks today!