Enter any S&P 500 ticker below. We'll run three independent valuation models — Graham Number, PEG Ratio, and Earnings-Based DCF — on live SEC data. Every calculation is shown step by step. No black boxes.
What is a Fair Value Calculator?
A Fair Value Calculator estimates what a stock is truly worth using multiple independent valuation models. By comparing the calculated intrinsic value against the market price, you can identify stocks that may be undervalued or overvalued.
Graham Number
Classic formula using earnings and book value (√22.5 × EPS × BV)
Earnings-Based
Projects future EPS and discounts back to present value
PEG-Adjusted
Fair P/E based on growth rate — a PEG ratio of 1.0
Ready to Calculate
Look up a stock above and we'll run all three valuation models automatically.
About the Fair Value Calculator
Estimate intrinsic value using three independent models: the Graham Number (earnings × book value), a PEG-Adjusted fair P/E approach, and an Earnings-Based DCF that projects future earnings. All three are averaged for a composite fair value with upside or downside versus market price.
Using multiple models matters — one formula never tells the full story. When all three point in the same direction, the signal gains weight.
How It Works
Graham Number: sqrt(22.5 × EPS × Book Value) — a conservative upper bound based on earnings and net asset value.
PEG-Adjusted: Computes a fair P/E by matching the growth rate (PEG benchmark of 1.0), then applies that to current earnings.
Earnings-Based DCF: Projects future earnings, prices them using the sector median P/E, then discounts back to today.
The composite averages all three equally. Model fitness ratings tell you which results to trust most.
Is Coca-Cola Fairly Priced?
ExampleOne thing about Coca-Cola (KO)? It fits what Warren Buffett looks for - steady profits, a name people trust, yet prices sometimes climb too high. Year after year, its payout grows - more than six decades straight - still, value matters just as much.
Graham Number — Benjamin Graham's formula sets a maximum price based on earnings and book value. For KO with EPS of $2.50 and book value of $6.50, the Graham Number lands near $19. This model was designed for asset-heavy firms — it often sets a conservative floor for brand-driven companies.
PEG Ratio — Peter Lynch's insight: a stock's P/E should match its growth rate. KO trades at 25× earnings but grows at 7% — giving a PEG of 3.6. Above 1.5 suggests investors are paying more than growth justifies.
Earnings-Based DCF — Projects future earnings forward, prices the stock using the sector median P/E (not KO's own inflated multiple), then discounts back to today's dollars. Result: around $54 — a 17% premium over fair value.
Here is why using more than one model helps: One formula never tells the full story. When all three point in the same direction — especially high prices — the message gains weight simply because it repeats across methods.
Frequently asked questions
The Fair Value Calculator runs three separate models on every S&P 500 stock. The Graham Number uses earnings and book value to find a safe price floor. The PEG Ratio checks if the P/E ratio matches earnings growth. The Earnings-Based DCF projects future earnings and brings them back to today's value. We average all three for a combined fair value, and show how much they agree.
Try it now — enter any S&P 500 stock above to run all three models with live financial data.
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