Fair Value Calculator

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1. Fair Value Calculator Tutorial
2. Fair Value Calculator Updates
3. Reverse DCF: How It Works
4. Undervalued Predictable Companies.

 

Earnings Per Share
Default value for Earning per Share (without none-recurring items) is the TTM GAAP earning. Use the information at right side to adjust.
:
Growth Rate In the Next
The number of years in the growth stage, and the average annual growth rate. The default value for the growth rate is the average EPS without NRI growth rate of the past 10 years. If this growth rate is higher than 20% a year, it is set to 20%. If this growth rate is less than 5%, it is set to be 5%.
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Years:
%
Terminal Growth Rate
After the growth stage, it is more reasonable to set the terminal growth rate at the inflation rate. The terminal growth rate must be smaller than the discount rate to make the calculation converge.
:
%
Years of Terminal Growth
The number of years for terminal value calculation. The value after this is considered zero. Default is 10.
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Discount Rate
A reasonable discount rate assumption should be at least the long term average return of the stock market, which is about 11%, because investors can always invest passively in an index fund and get an average return. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 10% - 20%.
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%
Business Predictability After the growth stage, it is more reasonable to set the terminal growth rate at the inflation rate. The terminal growth rate must be smaller than the discount rate to make the calculation converge.
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Fair Value
Intrinsic Value = Future Earnings at Growth Stage + Terminal Value.
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Tangible Book Value
Default Book Value is the tangible book value, which may underestimate or overestimate the real value
:
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Growth Value
Cumulative earnings during the growth stage discounted to current using the discount rate.
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Terminal Value
Cumulative earnings during the terminal stage discounted to current using the discount rate.
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Stock Price:
Margin Of Safety:

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DCF Parameters


Name:
Earnings Per Share :
Growth Rate In the Next:
    Years:    %
Terminal Growth Rate :
%
Years of Terminal Growth :
Discount Rate :
Tangible Book Value :

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