The Finbox Fair Value

  • What is fair value? How’s it related to margin of safety? Upside?
  • Warren Buffett’s views on the importance of fair value.
  • Calculating the finbox fair value.

Before jumping into our recently released finbox fair value cards, let’s first understand what it means. Put simply, a stock’s fair value is its underlying intrinsic worth. And according to Benjamin Graham, who’s considered the father of value investing, the margin of safety represents the difference between a stock price and its fair value. The further the price is below its fair value, the greater the margin of safety or upside!

So why’s this important?
Here’s what the most successful investor in the world (Warren Buffett) has to say about it:

Warren Buffett Margin of Safety Quote - finbox.io

Finbox Fair Value
Ok so fair value and margin of safety is important but how do we figure it out for a specific stock?

The finbox fair value card is a great starting point.

finbox.io fair value card

As shown in the card above, fair value estimates are calculated from our pre-built valuation models. For more information on the defaults used in these models, please see our default projections.

Being able to rely on our fair value estimates is crucial which is why we've also added uncertainty levels. Every card includes 1 of 3 uncertainty ratings that is determined by the number of valuation models used in deriving the estimate.

Finbox Fair Value Uncertainty Levels
Learn more about finbox uncertainty levels here.

On June 25th, Barron's Magazine featured finbox.io for the second time in its Digital Investor section. See what Barron's thinks about our fair value estimates here.

Figure out what your stocks are worth and start making better investments. Take a look at Apple (AAPL) to get started.

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