Margin of Safety Calculator

Your details

Choose how you want to calculate the margin of safety.
The price per share you would pay today.
USD
Your estimate of the true per-share value of the business.
USD
Margin of safetyAdequate margin of safety
35%

How far the current price is below intrinsic value, as a percentage of intrinsic value

Price discount35USD
Sticker price (intrinsic value)100USD
35% %
Overvalued<0%At fair value0%-15%Thin MOS15%-30%Adequate MOS30%-50%Strong MOS50%+

Margin of safety: 35.0%.

  • A 35.0% margin of safety meets the common 30% threshold many value investors require before committing capital.
  • Margin of safety does not guarantee a profit; it reduces the probability of a permanent capital loss, not the certainty of a gain.

Next stepCross-check the intrinsic value estimate with at least one other method (DCF, EV/EBITDA multiples) before committing capital.

 = Powered by OnlyCalculators