Calculate the true fair value of stocks!

With the following calculators you can independently enter fundamental data into the calculators and determine the fair value of a stock.

We have already calculated thousands of fair values in our premium database and prepared other useful tools for determining the true value of a stock.

1. Approximate fair value: Insert the earning per share (EPS) and revenue growth (%) into the approximate fair value calculator and get the approximate true fair value (intrinsic value) of the stock.  

2. Advanced Fair Value: To more accurately determine the true fair value (intrinsic value) of the stock, you can use the advanced calculator. Include earning per share, cash flow per share, earning per share growth, revenue growth, return on equity, EBIT margin and book value per share.  

3. Auxiliary calculators: The auxiliary calculators serve the purpose of complementing and allowing a historical average influence on the main calculators. This will adjust the result of the fair value by the historical average to prevent short-term errors. However, you can also individually calculate the averages for the individual values or simply use the last available key figure.

The required key figures for the fundamental analysis can be found on relevant stock market websites such as Yahoo finance. There you can enter the name of the stock and usually find under the tab "fundamental ratios / financials" the required fundamental values for the calculators.

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Insert the earning per share, cashflow per share, earnings growth in %, revenue growth in %, return on equity in %, the EBIT-marge in % and the book value per share into this advanced calculator to calculate a more detailed fair value (intrinsic value) by yourself.

If you want to calculate a stock of a foreign currency, you must first convert to Euro, then enter the values in euro into the required fields and afterwards convert it back to the target currency. All entered values must be positive and at least 0.1!

The auxiliary calculators determine the average of the EPS and the revenue growth. The results are entered into the main calculators above.

The influence of historical data over several years makes the result more accurate. All entered values must be positive and at least 1!

• At the beginning, you have to find the fundamental key figures of the desired company. To do this, use the search bar of the finance portal you prefer. In our example, we used finance.yahoo.com and searched for Apple Inc.

In Premium Membership on this website, the required key figures are automatically loaded by our data service provider and the fair value is automatically calculated with further key figures and other innovative tools to define the fair value of a stock.

• Look for the tabs "Financials" and "Statistics". There you will find a list of the annual values for the respective key figures.

Earnings per share: Go to the "financials" tab at Yahoo finance and look for "Reported EPS". Use the diluted EPS and try to find an average value for the past years. For Apple an Earning per share of 11 would be a good guess. To calculate a more detailed average you also can use the average auxiliary calculator on this website.

Cashflow per share: Go to "financials" and switch to "Cash Flow". Look for the Free Cash Flow and divide the Free Cashflow through the number of outstanding stocks. You find the number of outstanding stocks on the "Statistic" page at "Share Statistics".

The result will be the Cashflow per Share. For Apple the Cashflow per share should be about 14 for 2019.

Free Cashflow 2019: 63.97B / Shares Outstanding 4.3B = Free Cashflow per Share of 14,87.

Growth EPS: To define the growth of the earnings per share paste the Diluted EPS numbers (you used before) for every year into the average auxiliary calculator on this site. The result of EPS growth will be 21.16%

Growth Revenue: To define the revenue growth got to the "Financials" page on Yahoo finance again. Here you can find the Total Revenue.

Now you have to paste the revenue number for every year again into the growth calculator on this site. In this case we used the TTM value as the latest number. The result for the average revenue is therefore 11.36%

Return on Equity: To find the Return on Equity switch to the tab "Statistics" on Yahoo finance. Under the point "Management Effectiveness" you find the Return on Equity (ROE) is 56%.

EBIT Marge: Look for the Data "Operating Margin" on the same page. This figure is a bit higher than 24%.

Book Value per Share: This metric is also shown on the same Page. In the example of Apple its 20. 

Now paste the fundamental key data of Apple into the advanced fair value calculator. The calculator will give you the fair price of Apple.

If you did it right the calculator will show you the Fair Value for the Apple stock. My result for the Fair Value of Apple is 281.57 USD. 

Remember: The currency you use for EPS and Cashflow is also the Fair Value's currency!

Now you should compare this value to its real stock price. On this day one share of Apple costs 240 USD. As you can see the Apple stock is trading under its intrinsic fair value, so its whether undervalued and attractive for a buy. 

Not try to find stocks, that show a higher Fair Value than their current market price. These stocks are very likely to perform better than the overall market in the next years. To find undervalued stocks in a very easy and efficient way you can become member of our premium area to use stock screeners and other tools with thousands of fair value stocks.

• All data used in the fair value calculator must be positive and at least 0.1. If a fundamental figure is negative try to calculate the average figure of the data with the numbers of the past several years.   
  
  
• Try to avoid the use of numbers that significantly deviate from the numbers of the years before. The more homogeneous the series of numbers the better will be the result. 
  
  
• The more years used to calculate the fundamental average data, the more accurate will be the result. 
  
  
• Try to find stocks that grow constantly in earnings and revenue. Avoid companies with negative growth or no income. 
  
  
• If one fundamental data is abnormally high or low try to find out the reason for the abnormality. Is it a one time thing or does the abnormality show severe problems in the firms operations? 
  
  
• Use the calculator only as a supplement to your investment decisions. 

The Fair Value calculator consists of the main calculators, which reproduces the self-developed formula, two auxiliary calculators and one database.

To use the approximate Fair Value Calculator, "earnings per share" and "growth" must be entered. These key figures can easily be found on financial websites on stocks or the annual reports of stock market corporations.

The two auxiliary calculators can provide a weighted average to the two key figures that are necessary for the approximate Fair Value Calculator above.

The advanced Fair Value Calculator gives you the opportunity to calculate a more detailed fair value of your desired stock. 

Flowchart of a calculation of the fair value using the two weighted average calculators for EPS and Growth and the approximate Fair Value calculator:

In the Premium database, the fair values for many stocks have already been calculated and other key figures are included in the fair values in the database. This ensures that the fair value of nearly every share worldwide is immediately accessible and members can unlimited fair values from the database. Check out all advantages within the Premium-Membership or learn about our value strategy here.