Intrinsic Value CalculatorValue investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated. (courtesy of Investopedia.com)
Want to estimate the value of a stock? Try this top-rated Intrinsic Value Calculator!
Simply enter your stock symbol and click "Submit" to get started. Read more about Value Investing
How is the Estimated Intrinsic Value calculated?The software uses the estimated growth rate you supply (Note: you may find historic EPS and Equity growth rates useful in validating the estimated future growth rate). It then applies FV (future value) calculations to determine the expected EPS and stock price at some point in the future. It then reverses the calculation using a minimum acceptable rate of return (15%) to determine the intrinsic value in today’s dollars. The MOS price is half of that estimated intrinsic value price. Value investors believe that risk can be minimized by only investing when the current price falls below the MOS price.
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