Intrinsic value calculator
Three valuation models side by side, each asking a different question of one company.
Fill it from a company
Illustrative inputs
Cash, receivables and inventory: everything due to turn into cash within a year.
Everything owed, short and long term, leases and pension deficits included.
Optional. Only the price comparison uses it.
Illustrative inputs
Diluted, latest full year. One year stands in for earning power here.
Equity over diluted shares. It misses brands and software that were expensed.
Optional. Only the price comparison uses it.
Illustrative inputs
Operating cash flow less capital spending, latest year. The one filed input here.
Yearly growth through the forecast. Your estimate.
Whole years, at least one.
Growth forever after the forecast. Your estimate, below the discount rate.
The return you require. The WACC calculator builds one.
Debt less cash. Negative when cash is larger.
Net current asset value
2.00
What is left if the business stops today.
Assumes current assets are worth their book value and everything else is worth nothing.
- Check the current assets: stale inventory counts at full value.
Show the working
| Step | Value |
|---|---|
| Current assets less total liabilities | 200 |
| Two thirds per share, where Graham bought | 1.33 |
| Price over NCAV per share | 9.00 |
| Per share | 2.00 |
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How it works
NCAV = (current assets - total liabilities) / shares
Graham Number = sqrt(22.5 x EPS x book value per share)
DCF = (discounted forecast + terminal value - net debt) / shares
- The page never averages the three: a mean of incompatible models describes no company.
- The Graham Number and the DCF run the same code as their own calculators.
- Graham bought at two thirds of net current asset value, not at the value itself.
Reading the result
One axis, three bars: the chosen model in ink, the other two in grey, each from its own inputs. The dotted line is your price, where the chosen model takes one.
On the illustrative company the three land between 2 and 21.84 a share, all computed correctly.
Questions
Which model is right?
None in general. Net current asset value is a floor that values the going concern at nothing, the Graham Number is a screening ceiling, and a discounted cash flow rests on your own forecast.
Why not average the three?
They answer different questions on incompatible assumptions. An average describes no company and hides the useful signal, which is how far apart the three land.
Why can net current asset value be negative?
It sets current assets against every liability, so a company whose total liabilities exceed its current assets prints a negative figure, which on its own is not a sign of trouble.
Why no earnings power value or dividend discount model?
The product implements these three as per-share values and no others, so the page offers only what it computes the same way the product does.
What this leaves out
- Nothing is deducted for preference shares, minorities or a pension deficit.
- Every model assumes the accounts are what they say they are.
- Three models agreeing would not make any of them right.
Next step
A value you compute means more beside the market it was computed in: where one company's price to earnings and price to book sit among the US companies that file one.
The arithmetic runs in your browser, so the numbers you type never leave it. A ticker in the address is read on this site to look the company up, and goes nowhere else. Disclaimer.