Methodology & legal notice

Stock Value Calculator is operated by an individual based in Argentina. It is not registered as a financial advisor, investment analyst, or broker-dealer in any jurisdiction.

For any question, use the site’s "Send feedback" form.

Stock Value Calculator is a general-information, educational tool. The verdict on each analysis (undervalued, fair price, overvalued, or no verdict) is the automatic, impersonal output of a mathematical model: it is the same for every user who queries the same ticker with the same assumptions, and it does not take into account any individual’s financial situation, goals, or risk tolerance.

Nothing on this site is personalized investment advice, nor a recommendation to buy, hold, or sell a stock that is suitable for you. It is a starting point for your own analysis, not a substitute for it.

The model follows the intrinsic-value method described in Buffett's Books: a discounted cash flow applied to book equity or earnings per share, as appropriate.

1. Base metric. For most companies, Book Value per Share is used. When share buybacks distort that metric —if earnings per share equal or exceed 90% of book value, or if equity is zero or negative— the model uses Earnings per Share (EPS) instead.
2. Fiscal year-end data. The current value of the base metric, and the values from 5, 10 and 15 years ago, are always taken from the most recent fiscal year-end close, not from partial quarterly data. The three historical horizons are counted back from that same fiscal close —not the calendar year—, so each company is always compared against the same point in its own accounting cycle.
3. Historical growth rate. For each horizon, the compound annual growth rate between the historical figure and the current one is calculated, capped to a range of −5% to +30% per year to avoid unrealistic projections in extreme cases.
4. 10-year projection. The current metric is projected forward 10 years using that (capped) growth rate.
5. Exit multiple. The projected value is multiplied by a price/book (or price/earnings, in earnings mode) multiple to estimate a terminal value. The user can adjust this multiple with a slider; the site offers, as a reference, the 5, 10 and 15-year historical average of that multiple for the stock in question, calculated as a median —not a simple average— so outlier readings don’t distort it.
6. Discounting to present value. The terminal value is discounted to present value using, by default, the current yield on the 10-year U.S. Treasury note at the time of the analysis. The user can change this rate.
7. Dividends. The present value of dividends projected to be collected over those 10 years is added, assuming the current dividend amount stays constant.
8. Three horizons and a weighted average. All of the above is repeated for three historical horizons (5, 10 and 15 years), and the final intrinsic value is a weighted average of the three: 25% weight to the 5-year horizon, 50% to the 10-year one, and 25% to the 15-year one. If a company is missing one of the three horizons —for example, due to a recent IPO—, the weights are redistributed among the available horizons.
9. Foreign companies. For stocks and ADRs that report their financial statements in a currency other than the US dollar, values are converted to dollars using the market exchange rate in effect at the time of the analysis, applied to the entire historical series. This is done instead of using each year’s historical exchange rate so that currency swings don’t get mixed into the business’s real growth when the growth rate is calculated.
10. Verdict. A stock is "undervalued" when the market price is more than 10% below intrinsic value, "overvalued" when it is more than 10% above it, and "fair price" otherwise. When the calculated intrinsic value exceeds the market price by more than 100%, the site shows a warning notice next to the verdict, because in those cases the method tends to overestimate (see "Limitations and risks"). When that gap exceeds 150%, the site withholds a verdict altogether ("No verdict") rather than show a result that is likely unreliable.

Every assumption in the calculation —the base metric, the exit multiple, the discount rate and, in some cases, the historical data— can be adjusted manually from the calculator’s controls. Changing those assumptions changes the result.

The market price and the accounting data (book value, earnings per share, dividends) shown in each analysis are reported data, as published by the companies and by financial-data sources. Intrinsic value, margin of safety, and the verdict, on the other hand, are estimates: they depend entirely on the model’s assumptions and change if those assumptions change.

Market prices and each company’s financial statements come from professional financial-data providers. The default discount rate uses the official yield on the 10-year U.S. Treasury note. For companies that report in another currency, the exchange rate is taken from public market sources.

The price you see in the calculator is real-time. Each stock’s analysis is updated roughly once a month; the date of the last update is shown on each analysis.

The model’s output is highly sensitive to the assumptions used, particularly the historical growth rate and the exit multiple. For companies with high exit multiples, the model tends to overestimate intrinsic value —which is why the warning notice and the "No verdict" outcome exist. Source data may contain errors or lags.

A company’s past performance does not guarantee its future performance. Investing in stocks involves risk, including the risk of losing the entire amount invested.

The site is funded by voluntary donations from its users. It has no commercial agreements with brokers, with the issuers of the stocks analyzed, or with advertisers, and no verdict depends on or is influenced by any commercial agreement.

The site’s operator may hold positions in some of the stocks analyzed.