Quora Value Investing Intrinsic Value & Margin of Safety Calculator

Presets:

Security Fundamentals

Graham Model

Stock Ticker

Current Market Price

Earnings Per Share (EPS)

Normalized trailing 12M net income

Est. Growth Rate (g)

7-10 yr expected CAGR

Book Value / Share (BVPS)

Total assets minus liabilities

AAA Corporate Bond Yield

Graham benchmark Y (ref: 4.4%)

Required Margin of Safety 25%

10% (Low Risk / Buffett Moat) 25% (Standard) 50% (Deep Value / Graham Net-Net)

Benjamin Graham Intrinsic Value Equation:

V = EPS × (8.5 + 2g) × (4.4 / Y)

Calibrated with Graham's security analysis asset buffer against current AAA yield regime.

ACME Intrinsic Value Audit

Attractive Value Buy (Meets 25% Margin of Safety)

Calculated Intrinsic Value

$78.50

Graham conservative fair value

Target Buy Price

$58.88

Includes 25% safety margin

Actual Margin of Safety

29.94%

$23.50 below fair value

Safety Buffer Gauge vs Required Discount Adequate Buffer (+4.94% surplus)

Req: 25%

0% (Par Price) 25% Target 50%+ Deep Value

Graham Quality Score

86 / 100

Quora Value Aligned

Price-to-Earnings Ratio (P/E < 15.0) 12.2x Pass

Price-to-Book Ratio (P/B < 2.0) 1.72x Pass

Graham Number Check (√22.5 × EPS × BVPS) $56.92 Safe

Earnings Stability & Yield Cushion Solid Buffer

Quora Value Investing Wisdom & Mental Models

Practitioner Insights

Patience & Cyclical Turnarounds 18-Month Rule

“Companies are like crude oil tankers or aircraft carriers. They cannot turn on a dime and go another direction quickly. When a stock gets beaten up, wait for sideways consolidation.”

Application: Do not rush to buy immediately after bad news. Allow operational fixes to materialize before committing capital.

Trading Discipline Anti-Noise

“I never trade intraday. Intraday is not the proper way to make profit constantly. In simple terms, value investing looks for arbitrage where intrinsic value is higher than market price.”

Application: Ignore daily ticker flicker. High turnover amplifies transaction costs and emotional errors.

The Margin of Safety Principle Buffett & Graham

“You only buy when the price sits well below your estimate of intrinsic value, so you are protected if your analysis is off or the market stays irrational longer than expected.”

Application: Insist on a minimum 20% to 30% discount to protect against unforeseen business disruption.

Exportable Investment Thesis & Audit Log

This formatted valuation dossier records your exact parameters, Graham intrinsic valuation math, margin of safety thresholds, and Quora discipline criteria for record-keeping.