Stock corporations are required by law to submit annual business reports. These annual reports are publicly available and provide information about the financial health of a public company. With the Fair Value Calculator, we take certain financial key figures from these annual reports and prepare them so that even beginners can identify good and inexpensive stocks.
For fund managers and securities analysts, the annual reports of the stock corporations are the cornerstone of every buy or sell decision. They contain the most important key figures for profit, profitability, debt, growth and much more. Using these key figures, an approximate true price / value of the stock can be determined.
Experts then buy those stocks that appear particularly inexpensive on the basis of this analysis. For this "work" the investor pays commissions and surcharges to the bank.
With our tools you will learn how you can identify great stocks yourself and build a meaningful stock portfolio. In this way you save expensive fees and have your investments independently and transparently under control!
A good company keeps making higher profits. Earnings per share and sales growth can be found in the annual report. those key figures show how much the company earns per share and how much the company can grow year after year.
You can insert these two key figures into the manual calculator and receive the fair share price (fair value) of the share, which should be above the current market price to represent a buying opportunity.
With the manual calculators and the extended free calculators you are able to calculate the fair share price. With the Premium Tools automatically calculated Fair Price Values are available for over 30.000 shares and more precise stock analysis is possible.
For the free manual calculator you already need to know the financial figures from the annual report of the stock corporation. In the Premium Tool, we automatically load the key figures from the annual reports and prepare them for the user using specially developed artificial intelligence. As a premium member, unique information is available to you on the stock subpages:
The Premium Tool automatically calculates the fair price (fair value) of the stock. This is displayed in the premium area for each stock on the stock detail page. You should invest in stocks that have a higher fair value than the current market price. The fair value (fair stock price) is calculated using a specially developed algorithm, which uses up to 10 key figures to determine the true value of the share (profit, growth, profitability, book value and relative strength). In addition, the fair value is calculated and reported using the generally recognized discounted cash flow (DCF fair value) method.
Here is the example of the Foot Locker stock information on the detailed stock page within the premium area:
In addition to the current market price and the two fair values / prices for the stock, the accuracy of the fair value is also available. The more key figures are included in the fair value, the more accurate (1-3 stars) is the fair value for the stock.
The relative strength of the share shows how well the share has performed in comparison to all other shares in the database (overall market). The factor 1.47 in the last 6 months shows that this share has performed better than the overall market by a factor of 1.47.
In addition, an alternative scoring system is available, which brings further key figures such as debt in combination with fair value and relative strength in relation. Here the rating should be over five, which means that 5 of the 10 key figures are rated as better than usual.
On the subpage of each stock further key figures which are explained individually by clicking on the respective key figure are available.
Don't worry, you don't need to know all of these metrics by now. Because our artificial intelligence uses this information to build an easily understandable, coherent analysis text that everyone understands and colors the corresponding key figure green if it is to be assessed positively and red if it is to be assessed badly. In the course of the application you will get to know the key figures and you will get used to interpreting this information. Again in the example of Foot Locker:
With the industry comparison, you can compare this stock with any desired industry to find out how the stock performs in comparison to industry colleagues. As soon as you have activated the industry comparison by selecting, the analysis text and the comparative key figures will open. In addition, general target values are available.
Worldwide there are currently 38.100 shares available in our database. For the USA there are currently 624 stocks that have a higher fair price (fair value) than they currently cost on the stock exchange. For comparison, you will find 57 undervalued stocks in Germany. You can find and examine these stocks in the Stock Screener in the Premium Tool. There are also various filters available to make it easier to find good and cheap stocks. With an active Premium Account, you can search for the fair value of all 38,100 shares. If you are interested in one specific stock you can use the database search without an active membership if you want to see if your stock is in the database.
With the Premium Tools in our membership, you can use all tools for stock analysis unlimited! In the introduction to the Premium Dashboard you can see which tools are available. The premium access costs only a monthly fee of 7.90 Euro. This makes it the most comprehensive and cheapest database for fair values that we know of. You can cancel at any time via your PayPal account. No minimum commitment - no rip off! After paying, you will receive your access data directly by email and you can set up your personal premium dashboard immediately.
We from fairvalue-calculator.com examined other independent studies and have completed extensive backtesting in order to prove that our strategy works. In the past 14 years we proved that our strategy would have outperformed stock markets over the past 14 years with an additional annual return of 9-15% and less volatility. The fair value calculator strategy shows a promising way in stock picking. Read our examinations of backtesting and studies about our strategy.
Using the fair value calculator is no guarantee of secure profits! Investing in stocks can lead to financial loss!
Did you know that only 5% of all managed funds outperform the overall market, generating more returns than a random selection of stocks?
A study by Cass Business School in London even shows that monkeys invest better and more successfully on the stock market than fund managers do. This is partly because the costs of actively managed funds are so high that a completely random list of stocks often outperforms fund managers.
Avoid high management fees on funds and take your stock investment into your own hands. Use the Fairvalue Calculator to choose stocks that are worth more than they cost. All you need is a brokerage account and this website.
With the Fair Value Calculator, you can see what a stock is really worth and put together your own well balanced portfolio of undervalued, cheap stocks. On the one hand, you can use the free calculators or the search and database to assemble your own Fair Value stock portfolio. In addition, a Portfolio Manager is available to help you to create a balanced and diversified stock portfolio.
The best part is that you do not need any previous knowledge and putting together a well-balanced portfolio is child's play. Just follow the steps in the Portfolio Manager. Once you have compiled your portfolio, you can transfer the created stock list to your brokerage account. Should an action in your account be necessary or a fair value suddenly fall, we inform you automatically by email.
Premium Membership gives you access to all the premium tools to determine the true value of stocks and the composition of a fair value stock portfolio. These following tools are available within the premium search & database:
With the Portfolio Manager, you can assemble your personal stock portfolio full of Fair Value shares. The Portfolio Manager helps you to put together your stocks portfolio.
In the colored bars under the Watchlist, you can see what type of stock you should add to create a balanced low-risk portfolio.
For the stocks In your Portfolio Manager you will also receive alert emails: If a stock no longer meets the requirements of the Fair Value Strategy an email will be automatically sent to your Inbox. For every meaningful and necessary action that is necessary in this portfolio, you will also receive an email. You can place as many stocks as you want in the sample portfolio or watchlist.
To meet the requirements of the Portfolio Manager, you can use the categorical search for Fair Value stocks. Of course, you can also use this search without the use of Portfolio Manager.
Simply select the country of origin of the stock and select the market capitalization of the company.
Low caps are rather smaller companies, mid-caps medium-sized companies and high caps the largest companies in the selected country of origin.
You now have the opportunity to add the stock to your portfolio or to visit the stock and read more fundamental key figures.
In the result list you will find only stocks that have a higher fair value (intrinsic value) than they currently cost.
These lists are kept up-to-date, just as the stocks in your Portfolio Manager are constantly being updated.
In addition, you can see the percentage difference to the fair value and the performance that the stock has made while in your Portfolio Manager.
There are currently thousands of undervalued cheap stocks in our database that you can view with a premium membership.
In the search you can already look up without a premium account if the stock you are interested in is in our database. If you have a premium account, you can use this search to search for a stock and see the fair value and fundamental metrics:
The idea of investing in undervalued stocks, ie stocks with a higher true value than the current market price, is not new. Probably the most well-known representative of this investment philosophy is probably Warren Buffet.
As co-founder of the Value approach, Warren Buffet managed to accumulate an incredible fortune over the course of his life, beating the market by an average of 15% a year.
As a beginner you often have an incorrect perception about how the stock market works. What must be understood is that institutional investors actually have no advantage over private investors.
We have the feeling that people who trust their bank to invest their money often think, "They have specialists for that" or "they know a lot more than me".
However, this is not quite correct, as any information your bank has can also easily be retrieved from the internet.
But not only that, big institutional investors have two more crucial issues:
Only the glossy Flyer conveys that this is done in your interest. Only you can act 100% in your own interest. Because whether you win or lose your bank probably does not matter, because the commissions and expenses ceded them no matter how their depot develops.
In addition, a fund manager can not simply go for millions on a new stock. With the huge amounts of money the fund has to move, it is as damaging as the Titanic when it tried to dodge the iceberg.
By contrast, as a private investor, you are literally sitting in a speedboat and can get out of one position in seconds and immediately switch to another. It can often take months for a fund manager to stock up on the desired number of shares. There are simply not enough stocks, and during the acquisition of the shares, the fund drives itself up the buying price.
A rather difficult undertaking if you ask me - as if the fees you pay for it are not bad enough?
The following example is a classically wrong approach for a beginner to take:
No matter which stocks are in there and how revolutionary the system may seem. The question is not what stocks will be invested or what system will be used to select these stocks, but what are the fees that the advisor, in whatever form, wishes to have for parking your money.
A 5% initial charge, an annual management fee of 2.5%, transaction costs of 0.5%, and hidden costs can undermine the return. Total costs of more than 6% are independent of performance on the agenda. In addition, 90% of fund managers perform worse than the overall market.
This means that if you invest purely in the DAX without selecting individual stocks, you are already working better than 90% of German fund managers.
For example, this could easily be done with an ETF. All in all, you can expect that after a year of investing in a mutual fund through your house bank, you will most likely not make any money even in times of rising stock markets, due to expenses and the inability of the big funds to move. To prove this, I will now select a randomly chosen fund of 3 major banks in Germany and compare their 3-year performance with the DAX. But since I do not feel like receiving threatening letters from lawyers, I will not name the names, in this point you have to trust me. So I call these funds 1-3.
Let's start the games:
The DAX has had a performance of 27.5% over the last 3 years. This performance could easily have been achieved with an ETF and generated a return of 27%. How would the fund managers have performed in those three years?
To illustrate we have blindly compared for the performance of funds from a financial service website for 'stock only funds'. To do this we blindly selected the 1st, the 5th and 10th fund in the list and posted the fund's annual performance here. None of the three funds beat the market (here the DAX). Try it for yourself and compare the equity fund returns with the indices in each country or market!
In addition other fund costs such as initial charge of 5% are not included yet! Actually unbelievable ..
We also carried out a further experiment by searching Google for the "best stock fund currently" click on the first Google entry and look at the 3 year performance. Unbelievable .. A list of 65 funds appears and none of the 65 was even able to generate a return of 27% in 3 years. With 13 million investors in Germany, approximately 10 million invest in funds and only 3 million select individual shares. Why?
Note on ETFs: ETFs are passively managed stock baskets that are launched once and then no longer changed. That's why ETFs cost just 0.5% a year and you can use it to portray pretty much every index in the world, even baskets from individual industries can be purchased. This is called passive stock funds, so here no fund manager buys or sells stocks.
If you're now convinced that you'd better take stock investing into your own hands, then you should use this website and the Fair Value Calculator - your chances are not bad that you'll be successful in the stock market.
Here we would like to cite a few facts that legitimize the use of the fair value strategy. As already mentioned, we did backtesting and live testing on the Fairvalue method, which strongly supports the performance of our method. A live test was launched on 30/03/2016, and the compiled portfolio created according to the fair value method recommended here on this site has been able to deliver a higher return than the overall market. After already 1 year! The Dow Jones performance was also below the fair value portfolio during this period.
This is my personal opinion. Dr. Peter Klein, BA
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* Payment method of the membership fee is Paypal. By clicking on the button "Buy now access to premium tools" you will be redirected to Paypal. As a result, you can make the payment. With the completion of the payment you pay the monthly fee of 7.90,- Euro. You can cancel this fee anytime on Paypal by clicking on the payment and subsequently canceling the subscription. (Only with the monthly subscription you will receive email alerts if fair values in your watchlist change or an action in your portfolio is necessary.) The access is still valid for the current month even if you instantly cancel it. By purchasing Premium Tools, you will be able to view the Fair Value of Shares and other details. You do not really buy stocks, you buy the analysis of the stock.
Disclaimers: fairvalue-calculator.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on fairvalue-calculator.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The experts may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall fairvalue-calculator.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on fairvalue-calculator.com, or relating to the use of, or inability to use, fairvalue-calculator.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. With the Use of the Portfolio Manager you don´t actually buy stocks with real money. You just get the Information of how a stock portfolio could be compiled. To follow the instructions on this side is no guarantee for success on the stock market. Stock investments are risky and can cause financial damage or lead to money losses.