Intrinsic Value Calculator
Accurately Estimate a Stock’s True Worth
The Intrinsic Value Calculator helps traders and investors determine the fair value of a stock based on its fundamentals. This tool is crucial for value investors who want to identify undervalued or overvalued stocks. By calculating a stock's intrinsic value, investors can make informed decisions and avoid emotional buying or selling. Whether you are a beginner or an experienced investor, this calculator simplifies complex valuation models, aiding better decision-making.
Why Use the Intrinsic Value Calculator?
Calculate True Worth of Stocks
Determine a stock's fair value based on its earnings and growth potential.
Identify Undervalued or Overvalued Stocks
Compare intrinsic value with the current market price to identify buying or selling opportunities.
Support Long-Term Investment Decisions
Make data-driven decisions by evaluating a stock's future growth potential.
Save Time and Effort
Automates complex valuation calculations, providing quick and accurate results.
Importance and Benefits of the Intrinsic Value Calculator
Accurate Stock Valuation
Helps in calculating a stock's true worth based on fundamentals, not just market speculation.
Informed Investment Decisions
Assists in identifying undervalued or overvalued stocks for strategic buying or selling.
Avoids Emotional Trading
Enables logical decision-making, reducing impulsive buying or selling.
Time-Saving
Eliminates manual calculations, ensuring quick and precise valuations.
When to Use This Calculator?
When Evaluating Stock Investments To understand the fair value of a stock before buying or selling.
When Comparing Market Price with Intrinsic Value To identify undervalued (buy signal) or overvalued (sell or avoid) stocks.
When Analysing Growth Potential To evaluate how future earnings and growth rates impact a stock's valuation.
When Planning Long-Term Investments To make strategic decisions based on a stock's intrinsic value relative to its market price.
How to Use the Intrinsic Value Calculator?
Follow these simple steps to calculate the average price of your stock purchases:
Enter Earnings per Share (EPS)
Input the stock's earnings per share.
Enter Growth Rate
Provide the expected growth rate of the company.
Choose Discount Rate
Select an appropriate discount rate to account for risk.
Click Calculate
The calculator uses the Discounted Cash Flow (DCF) method.
View Results
Instantly get the intrinsic value per share, helping you evaluate if the stock is overvalued or undervalued.
Key Terms You Should Know
Intrinsic Value
The perceived value of a stock based on future earnings and growth potential.
Discounted Cash Flow (DCF)
A valuation method estimating the present value of expected future earnings.
Discount Rate
The required rate of return to compensate for investment risk.
Earnings Per Share (EPS)
The portion of a company's profit allocated to each outstanding share of stock.
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