Margin of Safety Stock Calculator - How To Fundamentally Value A Stock Based On Earnings
FINWIZ STOCKS SHEETSI created this using Phil Town’s #1 Investing formula.
How this is works is we take a company’s EPS (TTM) from Yahoo Finance and apply a Zack’s growth estimate over the next 10 years. This give you the projected earning of the company in 10 years. From there we apply an averaged P/E ratio from YCHARTS for the stock to give us a FUTURE VALUE or FUTURE SHARE PRICE.
Once we have the FUTURE VALUE we then apply an annual 15% minimum rate of return on our investment. This give us the STICKER PRICE of the stock.
Once we have the STICKER PRICE of the stock. We then cut the sticker price in HALF which is our MARGIN OF SAFETY price.
All you have to do is enter the TICKER SYMBOL and you're good to go.
You'll get a copy of this spreadsheet calculator to use forever. Simply plug in your ticker symbol and let it calculate a Margin of Safety price for you.