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DCF Calculator, Intrinsic Value Calculator & Graham Number

Three independent intrinsic value models in one tool — DCF, Graham number, and Earnings Power Value — auto-filled from SEC EDGAR filings for 350+ US tickers, or run the math on your own assumptions.

Inputs

Results

Enter a ticker or input values manually to see fair value across three independent models.

Pre-built FairValueLabs DCF

For each ticker we also publish a full DCF — predicted EPS based on 3-year EPS trajectory and analyst estimates, Fair P/E adjusted for sector and growth, full margin-of-safety verdict.

How it works

Three independent fair value models

No single formula captures every business. We triangulate — DCF for forward earnings, Graham for asset-backed value, EPV as a no-growth floor. The narrower the gap between models, the higher the confidence in the estimate.

1

DCF (Forward Earnings)

FV = predicted EPS × Fair P/E

Projects EPS forward 12 months and applies a fair P/E that compensates the discount rate after subtracting long-term growth. Best for stable-growth businesses.

2

Graham Number

FV = √(22.5 × EPS × BVPS)

Benjamin Graham's classic asset-backed formula. The 22.5 anchors P/E ≤ 15 and P/B ≤ 1.5. Best for asset-heavy, low-growth businesses.

3

Earnings Power Value

FV = EPS ÷ discount rate

Treats current earnings as a perpetuity with zero growth. Useful as a floor estimate — if EPV alone exceeds price, growth is essentially free.

FAQ

Common questions

What is fair value of a stock?

Fair value is an estimate of what a stock is worth based on its underlying business fundamentals (earnings, cash flow, growth, risk) — not what the market currently pays. When price is well below fair value the stock is potentially undervalued; well above, potentially overvalued. Models like DCF, Graham, and EPV translate financials into a per-share estimate.

How does this calculator work?

Pick any of 350+ US tickers and we auto-fill EPS, book value, growth, and beta from SEC EDGAR. The tool computes three fair value estimates side by side: DCF (forward earnings × fair P/E), Graham (asset-backed), and EPV (no-growth floor). You can override any input to model your own assumptions.

Which model is most accurate?

No single model is universally best. DCF works for stable-growth businesses. Graham suits asset-heavy companies with steady earnings. EPV is conservative — it assumes no growth and is a useful floor. Cross-check all three. A wide gap between models usually means the business has unusual characteristics (high growth, distress, asset-heavy) that one or more models don't capture well.

What discount rate should I use?

For US large-caps, 8–10% is the typical range. Adjust upward for higher-risk businesses (small-cap, distressed balance sheet, cyclical earnings) and downward for stable low-beta names. The discount rate is your required annual return — using a higher rate makes the calculator more conservative.

How is Graham's number calculated?

Benjamin Graham's formula is √(22.5 × EPS × BVPS). The 22.5 reflects his rule that P/E shouldn't exceed 15 and P/B shouldn't exceed 1.5 (15 × 1.5 = 22.5). The formula breaks down for negative EPS or BVPS — use DCF or EPV for those cases.

Why do my results differ from the FairValueLabs ticker page?

The published FairValueLabs DCF uses our own predicted EPS (3-year trajectory + analyst estimates) and a sector-adjusted fair P/E. This calculator gives you the simpler version with full control over inputs. Both should be in the same ballpark — large gaps usually mean an unusual growth or risk assumption.