Estimate a stock's fair value using the Discounted Cash Flow method. Find out if a stock is overvalued, undervalued, or fairly priced.
Intrinsic value is an estimate of what a stock is truly worth based on its future earnings potential, independent of its current market price. Warren Buffett famously said the key to investing is buying stocks below their intrinsic value — this calculator helps you find those opportunities.
The Discounted Cash Flow (DCF) model projects a company's future earnings, then discounts them back to today's dollars. A dollar earned 10 years from now is worth less than a dollar today — the discount rate accounts for this time value of money plus the risk involved.
Discount rate: Use 8-10% for large stable companies, 10-12% for mid-caps, and 12-15% for small/risky companies. This represents the return you'd need to justify the investment risk.
Growth rate: Check analyst estimates or use historical EPS growth. Be conservative — few companies sustain 15%+ growth for a decade.
Benjamin Graham and Warren Buffett recommend only buying stocks when the current price is 20-30% below intrinsic value. This "margin of safety" protects you from estimation errors and unexpected events.
You can find current EPS on any stock page in our directory. Look at the "EPS" metric on the stock's profile page.
DCF is only as accurate as your assumptions. Small changes in growth rate or discount rate can significantly change the result. Always use conservative estimates and build in a margin of safety.
Find EPS data for any S&P 500 stock
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