Intrinsic Value Calculator

Estimate a stock's intrinsic value using Benjamin Graham's earnings-based formula and compare it with market price. This page also keeps the formula, examples, FAQs, and references close by so you can check the result with confidence.

What This Intrinsic Value Calculator Helps You Do

Intrinsic value uses EPS, growth rate, and bond yield to estimate a stock's underlying worth. Review the formula and examples below if you want to see how the result is derived.

This page is meant to give you a fast answer, but it also helps you double-check the math before you make a decision. Start with the inputs that you already know, run the calculation, and then compare the output with the formula, examples, and FAQs below so you can see whether the answer fits the situation you are modeling.

If the result looks off, the usual causes are a unit mismatch, a missing decimal, the wrong scenario, or a value that needs to be entered as a rate instead of a total. The notes on this page are designed to make those checks easy without forcing you to leave the calculator and search for context elsewhere.

  • Use the calculator first for a quick estimate.
  • Use the formula to understand how the result is built.
  • Use the examples to compare common use cases.
  • Use the references when the answer depends on a standard or assumption.

Common Checks

A quick result is useful, but the best result is one that still makes sense when you look at it a second time. If you are comparing scenarios, try changing one input at a time so you can see which variable has the biggest impact on the final answer. That makes it much easier to spot whether the calculation matches your expectations.

It also helps to keep the context of the problem in mind. A calculator can tell you the math, but you still need to decide whether the input represents a total, a rate, an average, or a category-specific assumption. When in doubt, start with a simple example from the page and scale up from there.

  • Check that every unit matches the rest of the problem.
  • Keep rates, totals, and averages separate.
  • Adjust one variable at a time when testing scenarios.
  • Use the smallest realistic input first, then scale upward.

Scenario Planning

This calculator is especially useful when you want a quick answer before you commit time, money, or effort. Try one baseline input set, then change a single number and compare the result so you can see how sensitive the answer is to that variable.

That makes the page useful for more than just arithmetic. It becomes a small decision aid that helps you compare options, test assumptions, and explain the final number with confidence when you need to share it with someone else.

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Result

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Quick Answer: Intrinsic value uses EPS, growth rate, and bond yield to estimate a stock's underlying worth. Review the formula and examples below if you want to see how the result is derived.

How to Calculate Intrinsic Value Calculator

  1. Enter EPS: Use trailing earnings per share.
  2. Add the growth rate and bond yield: These drive the Graham formula.
  3. Compare with market price: The margin of safety shows the gap between estimated value and price.

Intrinsic Value Calculator Formula

V = EPS x (8.5 + 2g) x 4.4 / Y
Variable Meaning Unit
EPS Trailing earnings per share $
g Expected long-term growth rate %
Y Current AAA corporate bond yield %

Worked Examples

USA - Intrinsic value
  • EPS: $3.00
  • Growth rate: 7%
  • Corporate bond yield: 4.4%

Result: $82.50

The Graham formula estimates a stock value above the current market price.

UK - Margin of safety
  • EPS: £2.50
  • Growth rate: 6%
  • Corporate bond yield: 5%
  • Current market price: £30

Result: about 49%

The market price is well below the estimated intrinsic value.

EU - Higher yield effect
  • EPS: €4.00
  • Growth rate: 5%
  • Corporate bond yield: 6%

Result: lower intrinsic value

A higher bond yield reduces the estimated valuation.

How to Interpret Your Results

Range Meaning Action
Low margin of safety Price is close to intrinsic value Use caution; little valuation cushion remains.
Typical margin of safety The stock looks reasonably priced relative to Graham value Compare with business quality and growth durability.
High margin of safety The stock may be trading well below estimated value Recheck the growth and yield assumptions.

Frequently Asked Questions

It is the estimated true worth of a stock based on its earnings, growth, and bond-yield context.

It is the percentage gap between intrinsic value and market price.

Benjamin Graham's formula uses the AAA corporate bond yield as a valuation anchor.

No. It is a quick valuation estimate rather than a full discounted cash flow analysis.
Planning note: Valuation depends on assumptions. Use this as a screening tool, not a final investment decision.

References

Last reviewed: March 2026