Intrinsic Value Calculator (Graham Formula)
📊 Estimate Fair Value with Our Intrinsic Value Calculator (Graham Formula)
When it comes to value investing, few names carry as much weight as Benjamin Graham — the father of modern investing and mentor to Warren Buffett. One of his most practical contributions is a simple formula to estimate a stock’s intrinsic value, helping investors determine whether a stock is overvalued or undervalued.
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To make this calculation easy and accessible, we’ve built a Graham Formula-based Intrinsic Value Calculator that delivers instant results.
🔍 What is the Graham Formula?
The Graham Formula is a valuation method that estimates the intrinsic value of a stock based on its Earnings Per Share (EPS) and expected growth rate. It’s a conservative and straightforward approach to stock valuation.
Intrinsic Value = EPS × (8.5 + 2 × Growth Rate)
- EPS reflects the company’s profitability.
- Growth Rate represents the expected annual earnings growth.
The constant 8.5 represents the P/E ratio of a no-growth company, as per Graham’s original assumption.
🧮 How to Use the Intrinsic Value Calculator
Just enter:
- The company’s Earnings Per Share (EPS)
- The Expected Growth Rate (%)
And the calculator will instantly show you the Intrinsic Value.
This tool is ideal for:
- Value investors screening stocks
- Analysts preparing valuation reports
- Students learning investment principles
📈 Graham Formula in Action
Let’s say a company has:
- EPS: ₹25
- Expected Growth Rate: 10%
Then the intrinsic value would be:
₹25 × (8.5 + 2 × 10) = ₹25 × 28.5 = ₹712.50
This means the fair value of the stock, based on Graham’s model, is ₹712.50. If the market price is below this, the stock may be undervalued.
💡 Final Thoughts
The Graham Formula is a timeless tool for conservative investors. While it doesn’t account for all market dynamics, it provides a solid foundation for evaluating whether a stock is worth its price.
Use our calculator to estimate intrinsic value quickly and confidently — and add it to your financial analysis toolkit for smarter investment decisions.
