Stock Fair Value Calculator — DCF Intrinsic Value & Margin of Safety

The Value Investing Framework

Value investing is simple in theory: buy stocks for less than they're worth. The hard part is determining what a stock is actually worth — independent of what the market says.

Our fair value calculator uses a Discounted Cash Flow (DCF) model because it's grounded in the most fundamental truth about investing: a stock is worth the sum of all future cash flows it will generate, discounted back to today.

How Our DCF Model Works

For every stock we cover, we:

1. Pull 10 years of free cash flow history from SEC EDGAR 10-K filings
2. Calculate the historical compound annual growth rate (CAGR) as our base projection
3. Project free cash flows for the next 10 years (Stage 1)
4. Estimate a terminal value using a perpetuity growth model at GDP growth rate (Stage 2)
5. Discount everything back at WACC derived from the company's actual capital structure
6. Divide by shares outstanding to get per-share intrinsic value

The result is compared against the current market price to determine the margin of safety.

Finding the Strike Zone

The most powerful feature of FairValueLabs is cross-referencing multiple analysis engines. A stock that's merely undervalued might be undervalued for a good reason (distress, no moat). The Strike Zone filters for stocks that are simultaneously:

• Undervalued — positive margin of safety
• Safe — Altman Z-Score out of the distress zone
• Durable — moat rating of 3+ stars

When all three green lights are on, you've found what Warren Buffett calls "a wonderful company at a fair price."