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Margin of Safety Analyzer

Evaluate any stock's margin of safety using four independent valuation methods — Graham Number, DCF, Net-Net Working Capital, and Earnings Power Value. Get a consensus view that no single metric can provide.

Enter Stock Financial Data

Find these values in the company's 10-K filing, Yahoo Finance, or Morningstar. All values are per-share unless noted.

EPS (TTM)

Earnings per share

Book Value / Share

Equity / shares outstanding

Current Price ($)

Shares Outstanding (M)

Free Cash Flow / Share

FCF TTM / shares

Growth Rate (%)

Expected FCF growth

Discount Rate (%)

Required return / WACC

EBIT / Share

Operating income per share

Tax Rate (%)

Cash / Share

Receivables / Share

Inventory / Share

Total Liabilities / Share

Consensus Margin of Safety

—

Fair Value: — Price: —

Based on √(22.5 × EPS × BVPS). Defensive investor's maximum fair price per Benjamin Graham.

Fair Value: — Price: —

Discounted cash flow with 5-year growth + 5-year maturation + terminal value.

Fair Value: — Price: —

Graham's most conservative measure: (Cash + 0.75×Receivables + 0.5×Inventory) − Total Liabilities.

Fair Value: — Price: —

EBIT × (1 − Tax Rate) / WACC. Values the company's sustainable earnings with zero growth assumed.

Graham Number

√(22.5 × EPS × BVPS)

The maximum fair price for a defensive investor. Assumes P/E ≤ 15 and P/B ≤ 1.5 — Benjamin Graham's dual criteria from The Intelligent Investor.

Discounted Cash Flow

Σ FCF(1+g)^t / (1+r)^t + TV/(1+r)^10

Projects future free cash flows and discounts them to present value. The gold standard for intrinsic value estimation used by Buffett and institutional investors.

Net-Net Working Capital

Cash + 0.75×AR + 0.5×Inv − Liabilities

Graham's most conservative liquidation value. If a stock trades below NNWC, you're paying less than what the company would be worth if dissolved — a deep value signal.

Earnings Power Value

EBIT × (1 − Tax Rate) / WACC

Values the company based on sustainable current earnings with zero growth. Pioneered by Bruce Greenwald — any growth above this is a bonus, not a requirement.

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Disclaimer: This tool is for educational purposes only and does not constitute financial advice. Margin of safety calculations depend on user-provided data and assumptions. No single valuation method is definitive — use multiple approaches and independent research. Consult a qualified financial advisor before making investment decisions.