How much is that stock you're thinking about buying really worth? Our Price Check Calculator can help you estimate a fair price to pay for a stock based on three main things: the company's earnings, the rate at which those earnings are projected to grow and the stock's volatility.
Simply enter a ticker symbol and press Submit. We'll fill in the rest of the fields for you with assumptions that you can accept or change. Some are straightforward, like a company's earnings per share, its beta, the benchmark return and the risk-free rate an investor could earn elsewhere. Others are more subjective. The projected earnings growth rate we provide, for example, is taken from analyst estimates. You might choose to be more conservative or more aggressive in your assumptions. Likewise, you might want to assume that a company will increase its earnings at this rate for a longer or shorter time period than we've indicated.
Use our Price Check Calculator as part of the broader research you perform before buying a stock. And run a few different valuation scenarios for each company you look at, to see what its shares might be worth if it earns more or less than Wall Street is anticipating.
Our Price Check Calculator, keep in mind, isn't meant to give you our take, or analysts' take, on what a stock is worth. Use it as a quick and convenient way to estimate stock values based on your own assumptions.