Stock Valuation Calculator
Determine the fair value of a business or stock using multiple valuation methodologies. Whether you're evaluating a company for investment, acquisition, or sale, this calculator provides valuation estimates based on earnings, cash flows, and asset values.
Enter company financial data to see valuations using P/E ratio, price-to-book, and discounted cash flow (DCF) methods.
- Free Online Tool
- Instant Results
- No Installation
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Understanding This Calculator
Valuation Methods
Price-to-Earnings (P/E) Valuation
- Estimated Value = Earnings Per Share × Industry P/E Ratio
- Useful for comparing companies within the same industry
Price-to-Book (P/B) Valuation
- Estimated Value = Book Value Per Share × Industry P/B Ratio
- Best for asset-heavy industries like banking and real estate
Discounted Cash Flow (DCF)
- Value = Σ(Expected Cash Flow ÷ (1 + Discount Rate)^n)
- Projects future cash flows and discounts them to present value
- Most comprehensive but requires many assumptions
When to Use Each Method
- P/E — Best for profitable, established companies in comparable industries
- P/B — Best for financial institutions, real estate, and distressed companies
- DCF — Best for companies with predictable cash flows and growth trajectories
How to Use
- Enter the company's earnings per share or total earnings.
- Enter book value and total shares outstanding.
- For DCF, enter projected cash flows and discount rate.
- Enter industry benchmark ratios for comparison.
- Click Calculate to see valuation estimates.
Frequently Asked Questions
Which valuation method is most accurate?
No single method is universally best. Professional analysts use multiple methods and triangulate. DCF is considered most rigorous but requires many assumptions. P/E is simpler and works well for quick comparisons within an industry.
What is a good P/E ratio?
The average S&P 500 P/E ratio is historically around 15-20. Growth stocks often trade at 25-50+ P/E, while value stocks may be under 15. A 'good' P/E depends on the company's growth prospects and industry norms.
What discount rate should I use for DCF?
The discount rate should reflect the riskiness of the investment. For established companies, use the Weighted Average Cost of Capital (WACC), typically 8-12%. For startups or high-risk investments, use 15-25%. Treasury bond rates serve as the risk-free baseline.
How do I value a startup with no earnings?
Pre-revenue or pre-profit startups are typically valued using revenue multiples, comparable transactions, or the venture capital method (target return based on projected exit value). DCF with projected future cash flows is also used.
What is intrinsic value?
Intrinsic value is the estimated true worth of a company based on its fundamentals (earnings, assets, growth potential), independent of its current market price. If intrinsic value exceeds market price, the stock may be undervalued.