What this calculator does
The IntrinsicValueCheck.com calculator computes the intrinsic value of a stock using two complementary models:
- Discounted Cash Flow (DCF): Projects five years of free cash flow based on historical growth rates, then discounts to present value using an auto-calculated WACC. A terminal value captures steady-state growth beyond the projection window, capped at 2.5% perpetual growth.
- Residual Income (RI): Book value plus the present value of expected economic profit — earnings above the cost of equity. Applied at 100% weighting for banks and financial institutions where DCF is not meaningful.
For most stocks the blended fair value equals 90% DCF + 10% RI. The result is compared against the live market price to show upside or downside and a recommended action: Buy, Watch, Hold, or Premium.
Key features
- WACC auto-calculated from live data — no manual input required
- Bear, base, and bull scenario analysis with plain-English explanations
- Stock quality filter: ROE > 15%, gross margin > 40%, operating margin > 20%, revenue growth > 5%
- Analyst consensus target vs. model intrinsic value comparison
- Compare mode: side-by-side valuation of up to 4 tickers
- Watchlist and paper portfolio (saved in browser — no account needed)
Disclaimer: This tool is for educational and analytical purposes only and does not constitute financial advice. All valuations are based on historical data and future assumptions. Please conduct your own due diligence before making any investment decisions.