How We Calculate Fair Value
For about 35,000+ stocks worldwide we estimate a Fair Value — a company's intrinsic worth — from 21 independent valuation models, and we score business quality across 25 fundamental factors. This page explains transparently how that works, where the limits are, and why an estimate can be wrong.
What "fair value" means
Fair value is an estimate of intrinsic worth from a company's fundamentals — independent of the current share price. We then compare it to the price: trading well below it, a stock looks undervalued by our model; above it, the valuation looks stretched. This is an analytical read, not a buy or sell recommendation.
The 21 valuation models
Each company is valued through a stack of independent intrinsic-value models, blended into one family-balanced consensus — weighted by how much trustworthy data backs it. The model families:
- Discounted-cash-flow variants — future free cash flows discounted to today.
- Residual-income / earnings power — value from equity plus excess returns.
- Multiples — margin-anchored sales, earnings, book-value and EV multiples.
- Asset / book-value models — relevant for banks, insurers and holdings.
Every input is real reported data from the filings — nothing is guessed. Growth assumptions are deliberately capped so a single optimistic assumption can't dominate the result.
The Quality Score (25 factors)
A separate layer scores business quality (0–100) from about 25 fundamental factors — profitability, growth, balance-sheet strength, returns on capital and more — independent of valuation. This keeps a cheap price from being mistaken for a good business: a low price with weak quality can be a value trap.
Evidence & confidence
Every estimate carries an evidence status (high / medium / low). "High evidence" means the fair value rests on rich, cross-verified data and enough applicable models — not a thin estimate from a few figures. We also show a bear/bull range so the uncertainty stays visible.
Limitations — why an estimate can be wrong
A fair value is an estimate, not a certainty. It can be off when: reported data contains errors or is later restated; one-off items distort the result; the business model, industry or interest-rate regime changes structurally; or the conservative growth assumptions under- or over-state an exceptional company. That is why the evidence status and range are part of every output.
Data freshness
Prices refresh every trading day after the close; fundamentals update as new filings arrive. Every stock page shows the date its fair value is from. More under Data & Trust.
Frequently asked questions
Is the fair value a buy recommendation?
No. It is model-based, evidence-based analysis for education and research only — not financial advice and not a buy/sell recommendation.
Does the fair value depend on the price?
No — it is computed independently from the fundamentals and only then compared to the price.
How reliable is the estimate?
It depends on data quality and assumptions. Every stock therefore shows an evidence status and a bear/bull range.
Screen stocks → About us · Risk notice
Educational research only · not financial advice · no buy/sell recommendation.