Intrinsic Value Calculator
Estimate a stock's intrinsic value with Benjamin Graham's time-tested formula. Enter earnings per share, your growth expectation and the current AAA bond yield — the value updates instantly.
Trailing twelve-month diluted EPS
Sustainable annual earnings growth
Current high-grade bond yield (≈4–5%)
Add a price to see upside vs. intrinsic value
Graham intrinsic value per share
$134.75
Uses Graham's revised formula: V = EPS × (8.5 + 2g) × 4.4 ÷ Y, where g is the growth rate and Y the AAA bond yield. It rewards growth but anchors to what bonds pay — a quick reality check, not a precise target.
Want intrinsic value for every dividend stock?
We compute a blended fair value — Graham, DCF and a dividend-discount model — for thousands of payers, refreshed weekly.
Open the value screenerUsing Graham's formula well
Graham designed the formula as a quick filter, not a final answer. A few things to keep in mind:
- Use normalized EPS. A single depressed or inflated year distorts the result. Smooth out one-off items where you can.
- Be conservative on growth. The (8.5 + 2g) term means doubling your growth assumption nearly doubles the value. Optimism here is the most common mistake.
- Mind the bond yield. The 4.4 ÷ Y term means higher rates lower fair value — which is why expensive-looking stocks can become cheap when yields fall, and vice versa.
Because earnings-multiple models reward growth heavily, treat the output as one data point. On our undervalued list we blend it with cash-flow and dividend-based models and cross-check against dividend safety — so a stock has to look cheap by several measures and be financially sound before it surfaces.
Intrinsic value calculator FAQ
- What is intrinsic value?
- Intrinsic value is an estimate of what a stock is actually worth based on its fundamentals — earnings, growth and prevailing interest rates — independent of its current market price. Buying below intrinsic value is the core idea of value investing.
- What is the Graham formula?
- Benjamin Graham's revised formula is V = EPS × (8.5 + 2g) × 4.4 ÷ Y, where g is the expected annual growth rate and Y is the current AAA corporate bond yield. The 8.5 represents the base P/E of a no-growth company; the bond-yield term adjusts for interest rates.
- What growth rate should I enter?
- Use a sustainable long-term earnings growth estimate — typically 7 to 10 years out — not a single hot year. Be conservative; the formula is sensitive to growth, and analysts tend to be optimistic.
- Is the Graham formula still relevant?
- It's a fast, intuitive cross-check rather than a precise valuation. Because it can overweight growth, we pair it with a discounted cash flow and a dividend-discount model when we compute a stock's fair value.
For informational purposes only — not investment advice.