Intrinsic Value Calculator

Intrinsic value is the true underlying worth of a stock based on its fundamentals — earnings, cash flows, growth, and risk. It is the price a rational investor would pay if they knew the company's entire future financial picture.

Unlike market price, which can be swayed by emotion, momentum, and short-term news, intrinsic value is anchored in measurable financial data. When the market price falls below intrinsic value, the stock may be undervalued.

Our calculator runs 7 independent valuation models — DCF, Graham, P/E, P/S, DDM, EV/EBITDA, and Dividend Yield — to give you a consensus fair value with confidence score.

1. Search for a ticker above (e.g. AAPL) or enter financial data manually.
2. Review the core inputs: EPS, Free Cash Flow, Shares Outstanding, Growth Rate, and Discount Rate.
3. Optionally adjust extended inputs for all 7 valuation models.
4. Click "Calculate Fair Value" to run the models and see the AI consensus.
5. Compare the calculated fair value to the current market price to determine if the stock is undervalued, fair, or overvalued.

Different companies suit different models. Here is a quick guide:

DCF (Discounted Cash Flow)

Best for: Cash-flow positive companies with predictable growth (e.g. Microsoft, Apple).

Graham Formula

Best for: Stable, dividend-paying companies with moderate growth (e.g. Coca-Cola, Johnson & Johnson).

P/E Multiplier

Best for: Mature companies with consistent earnings history.

EV/EBITDA

Best for: Capital-intensive companies where debt structure matters (e.g. telecom, utilities).

The DCF model calculates intrinsic value by summing the present value of all future free cash flows plus a terminal value. It is the gold standard for valuing cash-flow-generating businesses.

Formula:

Where FCF = Free Cash Flow, g = growth rate, r = discount rate (WACC), TV = Terminal Value = FCF_n * (1+g_terminal) / (r - g_terminal)

Example: A company with $1B FCF, 8% growth, 9% WACC, and 2.5% terminal growth yields a fair value per share of ~$142 after adjusting for debt and cash.

Benjamin Graham's formula estimates intrinsic value using earnings per share, expected growth, and the current AAA corporate bond yield. It is simple, conservative, and battle-tested since 1962.

Formula:

Where EPS = Earnings Per Share, g = expected growth rate (%), Y = current AAA bond yield (%).

Example: A stock with $5 EPS, 8% expected growth, and 4.4% AAA yield yields a fair value of $5 * (8.5 + 16) * (4.4 / 4.4) = $122.50.

Here is a summary of all 7 formulas used in our calculator:

DCF:

Fair Value = PV(FCF) + Terminal Value - Net Debt / Shares

Graham:

FV = EPS * (8.5 + 2g) * (4.4 / Y)

P/E:

FV = Avg P/E * EPS

P/S:

FV = Avg P/S * Revenue / Shares

DDM:

FV = DPS * (1 + g) / (r - g)

EV/EBITDA:

FV = (EV/EBITDA * EBITDA - Debt + Cash) / Shares

Div Yield:

FV = DPS / Avg Dividend Yield

Margin of Safety is the discount between the calculated fair value and the current market price. A wider margin provides a cushion against errors in your assumptions.

Rule of thumb: Look for a margin of safety of at least 20-30% for undervalued stocks. Our calculator flags any stock with >10% upside as "Undervalued" and >10% downside as "Overvalued".

Let us walk through Apple (AAPL) using real-world approximations:

• EPS = $6.50
• FCF = $100B
• Shares Outstanding = 15.5B
• Growth Rate = 6%
• Discount Rate (WACC) = 8.5%

DCF fair value per share ≈ $142. Graham fair value ≈ $175. P/E fair value ≈ $130. Our AI consensus weights DCF highest and arrives at a fair value around $145 — suggesting Apple trades near fair value at ~$220 (as of early 2026).

These are illustrative estimates. Always verify with the latest financial statements.