Intrinsic Value Calculator
Calculate a stock's intrinsic value using four independent valuation models (DCF, Graham Number, PEG, and Dividend Discount), then see the weighted composite estimate to determine if a stock is undervalued, overvalued, or fairly priced.
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
How to Calculate Intrinsic Value
Intrinsic value is what a stock is actually worth based on its financial fundamentals, not what the market says it's worth today. The gap between intrinsic value and market price is where investment opportunities hide.
This calculator blends four proven approaches, each with a different lens on value:
DCF - 40% weight
Projects free cash flow over 10 years and discounts to present value. Best for companies with stable, positive cash flow.
Graham Number - 25% weight
Benjamin Graham's classic formula: sqrt(22.5 × EPS × Book Value). A conservative floor for the stock's worth.
PEG - 25% weight
Adjusts the P/E ratio by growth rate. Fair P/E = growth rate × 100. Rewards fast growers, penalizes slow ones.
DDM - 10% weight
Values stocks by their future dividend stream. Only applies to dividend-paying companies; weight redistributes if N/A.
No single model captures the full picture, so we blend them. The composite weights DCF highest because it's the most comprehensive, followed by Graham and PEG for current-fundamentals grounding, and DDM as a supplementary check for dividend payers.
Want to see this applied to real stocks with live data? Browse our stock fair value estimates. We run all four models daily on 510+ US stocks using analyst growth estimates and real financial data.
Intrinsic Value Calculator FAQ
What is the intrinsic value of a stock?
Intrinsic value is the estimated true worth of a stock based on its fundamentals (earnings, cash flow, growth prospects, and assets) rather than its current market price. If a stock trades below its intrinsic value, it may be undervalued and represent a buying opportunity.
How is intrinsic value calculated?
This calculator uses four methods: (1) DCF, which projects 10 years of free cash flow and discounts them to present value, (2) Graham Number, Benjamin Graham's formula using EPS and book value, (3) PEG, which adjusts the P/E ratio by the growth rate, and (4) DDM, which values dividend-paying stocks based on future dividend payments. The composite blends all four with weights of 40% DCF, 25% Graham, 25% PEG, and 10% DDM.
What is the difference between intrinsic value and fair value?
Intrinsic value focuses on future-oriented models (like DCF and DDM) that estimate what a business will generate over time. Fair value includes current-fundamentals models (like Graham Number and PEG ratio) that look at what the stock is worth based on today's earnings and assets. In practice, both aim to answer the same question: what should you pay for this stock?
What inputs do I need?
At minimum you need the current stock price and EPS (earnings per share). For a complete analysis, also provide book value per share, free cash flow, shares outstanding, annual dividend, and an expected growth rate. You can find these on any financial data site or the company's annual report.
How do I know if a stock is undervalued?
If the composite fair value is more than 15% above the current stock price, we consider the stock undervalued. If it's more than 15% below the current price, it's overvalued. Anything in between is considered fairly valued. At least two valuation models must produce a valid estimate for a verdict to be issued. Remember, these are estimates, not guarantees. Always combine quantitative analysis with qualitative research.
Why do different valuation models give different results?
Each model uses different inputs and assumptions. DCF projects future cash flows, Graham looks at current earnings and book value, PEG considers growth-adjusted earnings, and DDM focuses on dividends. The differences highlight the uncertainty inherent in valuation, which is exactly why we blend them into a weighted composite rather than relying on any single model.