AI Generated Formula to Value Stocks
🌟 Super Fair Value Calculator
The Super Fair Value v4 is a modern stock valuation model that blends balance sheet strength and mathematically smoothed growth expectations. Designed with love, AI and real-world data, it offers investors a grounded, yet powerful tool to estimate what a stock is really worth.
🔍 How it works
Total Assets: This is the full size of a company’s balance sheet – including equity and debt. You’ll typically find this figure listed as “Total Assets” in the financial statements.
Growth Rate: This refers to the company’s expected annual revenue or earnings growth. You can use past data or analyst consensus. Common values range between 5% (for mature firms) and 20% (for high-growth companies). Negative values are allowed.
Shares Outstanding: The number of shares the company has issued. You’ll find this on platforms like Yahoo Finance, under “Statistics”.
The Super Fair Value formula estimates the fair value using:
Fair Value (Market Cap) = 0.6 × Total Assets + 120 × Growth_adj
Growth_adj = ((Growth + 100) × (1 / (1 + e^(-(Growth + 100)/10)))) – 100
Fair Value per Share = Fair Value (Market Cap) / Shares Outstanding
What is Growth_adj and why do we use it?
In reality, growth doesn’t impact valuation linearly. Small changes near zero have little effect, but high growth can lead to exponential overvaluation in traditional models. That’s why we developed a mathematically “smoothed” growth function using a sigmoid (logistic) curve. It compresses extreme values and better reflects how markets actually reward growth — making the model more stable and realistic across all sectors.
