Margin of Safety Calculator

Calculate margin of safety for investments.

Margin of Safety Calculator - Calculate Investment Safety Margin

Margin of Safety Calculator

Calculate the margin of safety for your investments to assess the risk and potential upside of your investment decisions.

Investment Analysis

Intrinsic Value ($)

Fair value based on your analysis

Market Price ($)

Current trading price

Analysis Results

Margin of Safety

Potential Upside

Price Difference

Investment Scenarios

Scenario	Market Price	Margin of Safety	Potential Return

Understanding Margin of Safety

Formula

Margin of Safety (%) =
((Intrinsic Value - Market Price) / Intrinsic Value) × 100

Key Concepts

Intrinsic Value: Fair value based on fundamental analysis
Market Price: Current trading price
Positive Margin: Stock trading below intrinsic value
Negative Margin: Stock trading above intrinsic value

Investment Guidelines

20%+ Margin: Excellent safety buffer

10-20% Margin: Good safety buffer

0-10% Margin: Moderate risk

Negative Margin: High risk

Benefits

• Protection against valuation errors
• Reduced downside risk
• Better long-term returns
• Disciplined investment approach

Investment Tips

• Use conservative assumptions when calculating intrinsic value
• Consider multiple valuation methods for accuracy
• Higher margin of safety is generally better for risk-averse investors
• Market conditions can affect the required margin of safety
• Regularly reassess your intrinsic value calculations
• Remember that margin of safety doesn't guarantee profits

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v1.0.0.758733