Intrinsic Value Calculator

Intrinsic value is an estimate of what a business is actually worth, based on its fundamentals — earnings, assets, and growth prospects. It is independent of the current market price. When market price falls below intrinsic value, a potential margin of safety exists.

The Graham Number is a formula developed by Benjamin Graham: √(22.5 × EPS × Book Value per Share). It combines earnings and assets to produce a conservative upper-bound estimate. The multiplier 22.5 reflects Graham's maximum acceptable P/E (15) × maximum acceptable P/B (1.5). It works best for stable, profitable companies with tangible book value.

The P/E valuation method multiplies earnings per share by a normalized P/E ratio to estimate fair value. A common starting point is 15× — the long-run historical average for U.S. equities. Adjust the target P/E based on the company's sector, competitive moat, and growth trajectory.

Earnings Power Value estimates what a company is worth assuming its current earnings persist indefinitely, growing at a steady rate. It uses the formula: EPS × (1 + growth rate) ÷ (discount rate − growth rate). It is a simplified form of a discounted cash flow model useful for mature, stable companies.

An entered 0 is read as the figure you typed, not replaced by the default. A 0% growth rate is a legitimate assumption — Earnings Power Value then treats current earnings as a flat perpetuity, EPS ÷ discount rate. A target P/E of 0 or less, or a discount rate at or below 0% or at or below the growth rate, cannot produce a figure at all, so that one method is withheld and the page names which and why. The Graham Number reads none of these inputs and is unaffected. Leaving a box blank still applies its default.

No single valuation model is perfect. The Graham Number favors asset-heavy businesses; P/E valuation favors stable earners; EPV works best for steady compounders. Blending all three reduces reliance on any single model's assumptions and typically produces a more balanced estimate.

Equity Rank blends 8–15 valuation models per stock — including DCF, Graham Number, P/E, P/B, P/S, EV/EBITDA, PEG, and DDM — each weighted by sector-calibrated method weights. The output is a model fair value range (weighted 25th to 75th percentile across methods), not a single point. This range is a model estimate under specific assumptions and does not represent a prediction of future market price.