Free Tool

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

Adjust the sliders to analyze margin of safety using four valuation methods in real-time.

EPS (TTM)

$6.50

Earnings per share

Book Value / Share

$25.30

Equity / shares outstanding

Current Price ($)

$85.00

Shares Outstanding (M)

1,500M

Free Cash Flow / Share

$8.00

FCF TTM / shares

Growth Rate (%)

10.0%

Expected FCF growth

Discount Rate (%)

10.0%

Required return / WACC

EBIT / Share

$9.00

Operating income per share

Tax Rate (%)

21%

Cash / Share

$5.00

Receivables / Share

$3.50

Inventory / Share

$2.00

Total Liabilities / Share

$15.00

Adjust the sliders to analyze margin of safety using four valuation methods.

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.

Get multi-method analysis on autopilot

LIUV's Portfolio Advisor runs all four valuation methods across your entire portfolio — automatically, with real-time data, and continuous monitoring for valuation shifts.

Start 7-Day Free Trial

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.