Intrinsic Value Calculator
Estimate a stock's intrinsic value using discounted cash flow analysis. Explore how your assumptions about growth, risk, and terminal value affect the calculated fair value.
Understanding Intrinsic Value
Growth Rate
The expected annual growth in free cash flow. Higher growth assumptions increase intrinsic value, but must be supported by competitive advantages and market opportunity. StockWorthy calibrates initial estimates based on historical performance and analyst expectations.
Discount Rate
Reflects the required return for bearing investment risk. Higher risk companies warrant higher discount rates, which lower present value. Our calculator considers beta, sector risk premiums, and market conditions.
Terminal Value
The assumed value of all cash flows beyond the projection period. Terminal growth is typically set near long-term GDP growth rates. This assumption often has significant impact on calculated intrinsic value.
Margin of Safety
A buffer applied to the calculated intrinsic value to account for estimation uncertainty. This concept, popularized by value investors, provides downside protection against errors in assumptions.
Consistent Methodology Across Hundreds of Stocks
Educational assumption-based analysis you can trust
StockWorthy's intrinsic value calculator applies a consistent DCF-based methodology across our entire coverage universe. From tech giants to dividend aristocrats, from growth stocks to REITs—every stock valuation follows the same rigorous framework, adjusted for sector-specific characteristics.
Our interactive tools allow you to explore how small changes in assumptions can significantly impact fair value estimates. This sensitivity analysis is a key concept in assumption-based stock valuation and helps illustrate why different analysts may arrive at different intrinsic value conclusions.
Remember: All intrinsic value calculations are illustrative and vary depending on inputs selected. This is educational content, not investment advice.
See the Calculator in Action
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The intrinsic value calculator provides assumption-based estimates for educational purposes only. Calculated values vary significantly based on growth rate, discount rate, and terminal value assumptions. This tool does not constitute investment advice—always consult a qualified financial professional before making investment decisions.