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Stock Fair Value Calculator
This tool helps answer the questions:
How can I
efficiently value a stock
using fundamental analysis, based on EPS and its growth, without feeding unessential accounting variables or economic assumption in a discounted cash flow (DCF) model?
How can I
not get lost
in ambiguous stock recommendation from brokers, advisors, bloggers, and youtubers? Are their estimates realistic, or too optimistic?
Am I prepared for the risk due to rising interest rate or downturn growth? Can I estimate
how sensitive the price may go down
?
Stock Name
Create New
Stock list
Name
Edit
Company Earnings (EPS)
Company lifecycle stage
Start-up to high growth
Mature
Manually fill EPS for
1
2
3
4
5
6
year(s)
Next 12-month EPS
2nd-year EPS
3rd-year EPS
4th-year EPS
5th-year EPS
6th-year EPS
Subsequent EPS growth
/ year
, applied for
Input the years that the growth will continue for, until the end of high-growth stage
years.
Mature-stage EPS growth
/ year
Discount rate assumption
Risk-free rate reference
US Treasury Yields
(as of
)
1 year
3 year
5 year
10 year
30 year
Risk-free rate input
10-year Treasury yield is commonly used in valuation practice
Equity risk premium
Typical equity risk premium is around
2% to 8%
, affected by the following factors:
When the stock market is at panic situation, or when investors' risk appetite is low (unwilling to take the risk), the risk premium would be higher.
When the market is overheated, or investors' risk appetite is high (willing to take more risk), the risk premium would be lower.
When a company has more volatile earnings, it would have higher risk premium.
Required rate of stock
This stock's fair price
Price sensitivity
EPS growth achieved
x
150%
125%
110%
100%
90%
75%
50%
x
150%
125%
110%
100%
90%
75%
50%
Interest rate change
-3%
-2%
-1%
0%
1%
2%
3%
-3%
-2%
-1%
0%
1%
2%
3%
Stock fair price change to
Value change
Close