Fair Value Calculator
Is a stock overvalued or undervalued? Enter a company's financial data below and this calculator will estimate its fair value using four proven valuation models (DCF, Graham Number, PEG, and Dividend Discount) blended into one composite estimate.
Enter Company Data
Provide a stock's key financial data below. All four valuation models will update instantly.
Composite Fair Value
Overvalued$80.67
vs. current price of $150.00(-46.2%)
Individual Model Results
Graham Number
25% weightBenjamin Graham's classic formula: sqrt(22.5 × EPS × Book Value). Finds the maximum price a value investor should pay.
$24.19
-83.9%Overvalued
DCF (Discounted Cash Flow)
35% weightProjects free cash flow over 10 years and discounts to present value.
$157.78
+5.2%Fair Value
PEG (Price/Earnings to Growth)
25% weightFair P/E ratio equals the earnings growth rate. Fast-growing companies deserve a higher multiple.
$65.00
-56.7%Overvalued
DDM (Dividend Discount Model)
15% weightValues the stock based on the present value of all future dividend payments. Only applicable to dividend-paying stocks.
$21.00
-86.0%Overvalued
What Is Fair Value?
Every stock has two prices: the market price (what people are paying right now) and the fair value (what it's actually worth based on fundamentals). When the market price drops below fair value, you have a potential buying opportunity. When it rises above, the stock may be overpriced.
The challenge is that fair value isn't a single, exact number. It's an estimate that depends on your assumptions about growth, risk, and the future. That's why this calculator uses four different models, each with a different perspective:
- DCF asks: how much cash will this business generate over the next decade?
- Graham Number asks: based on current earnings and assets, what's the most a conservative investor should pay?
- PEG asks: is the price-to-earnings ratio justified by the growth rate?
- DDM asks: how much are all future dividends worth in today's dollars?
By blending all four, you get a more robust estimate than any single model provides. The weighted composite is your best starting point, but always pair it with qualitative analysis of the company's competitive advantages, management quality, and industry trends.
Ready to see fair value for real stocks? Browse our stock fair value estimates for 510+ US stocks, or check specific stocks like Apple (AAPL), Microsoft (MSFT), or NVIDIA (NVDA).
Fair Value Calculator FAQ
What is the fair value of a stock?
Fair value is the estimated price a stock should trade at based on its underlying fundamentals: earnings, cash flow, assets, and growth rate. If a stock's market price is significantly below its fair value, it may represent a buying opportunity. If it's above, it may be overpriced relative to what the company is actually worth.
How do you calculate fair value?
This calculator uses four valuation models: DCF (Discounted Cash Flow) projects future cash flows and discounts them to present value (40% weight), Graham Number uses Benjamin Graham's formula based on EPS and book value (25%), PEG ratio adjusts P/E by the growth rate (25%), and DDM (Dividend Discount Model) values future dividends (10%). The composite blends all four into a single estimate.
What is the difference between fair value and market price?
Market price is what investors are currently willing to pay. It's driven by supply, demand, sentiment, and news. Fair value is what the stock is fundamentally worth based on earnings and cash flow. Short-term, the two can diverge significantly. Long-term, market prices tend to converge toward fair value, which is why value investors look for gaps between the two.
Is fair value the same as intrinsic value?
They're closely related but slightly different in focus. Intrinsic value typically refers to future-oriented models (like DCF) that project what a business will generate over time. Fair value is broader: it includes both forward-looking models and current-fundamentals measures like the Graham Number and PEG ratio. Our calculator computes both and blends them into one composite.
What does 'Undervalued' mean?
A stock is labeled 'Undervalued' when its current market price is more than 15% below the composite fair value estimate. This suggests the stock may be trading at a discount to its fundamental worth. However, valuation models are estimates. Always combine quantitative analysis with qualitative research about the company's competitive position, management, and industry trends.
Can fair value be wrong?
Yes. Fair value is an estimate, not a guarantee. It depends entirely on the accuracy of your inputs, especially the growth rate. A company might look undervalued by the numbers but have deteriorating fundamentals that the model doesn't capture. That's why we use four models (to reduce single-model bias) and apply a 25% margin of safety to the DCF calculation.