Intrinsic Value Calculator OE

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About this app

Our Intrinsic Value Calculator OE is based on Warren Buffett's "Ten Cap Price" otherwise known as "Owner Earnings" calculation. Buffett is calling Owner Earnings: "the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses."

Per Warren Buffett Value Investment Theory the buy decision should be based on several factors:

1. Company must have competitive advantage.
2. Company performed admirably in the past 10 years, recovered after market correction(s).
3. Company must have long term prospects - be relevant in 10 years from now.
4. Company's market price should be 20-30% less than calculated intrinsic value - margin of safety price.

The logical question you would ask is how is it possible for such a good company to have the market price 20-30% bellow intrinsic value? The answer is: YES it's possible due to various reasons. The potential reasons could include: bad news about the company, company's industry is out of market favor, market is in correction or recession.

All statistical data shows that we are in the biggest Stock Market Bubble in the history of the world! Bigger than "DOT-COM Bubble" of 2001 or "Housing Bubble" of 2008. It's just a matter of time before this Market Bubble is popped presenting an opportunity for Value Investors to buy their favorite stocks for less than intrinsic value! But in order to buy your favorite stocks for less than intrinsic value you need to know what this intrinsic value is. This is when our Intrinsic Value Calculator comes handy. You can calculate, store, reload and compare intrinsic value with market price anywhere and anytime, and all you need is your phone and our application.

You can read more about Value Investing online. We would recommend - "The Intelligent Investor" book written by Benjamin Graham - Warren Buffett's teacher and the founder of Value Investment Theory.
The goal of this application is to help value investors with calculation of intrinsic value. Most of the values required for calculation could be found on company's latest annual report. Annual reports can be found on company's website in investor relations section.

Each edit field has a corresponding help button to explain the meaning and location of the data on company's annual report.

"Examples" button would display Intrinsic Value for BAC, JPM, BABA, BIDU, NFLX and M7 stocks: META, AAPL, AMZN, GOOG, MSFT, TSLA and NVDA. Based on calculated Intirnsic Value of these stocks we can conclude that current Stock Market BUBBLE should be called "M7 Bubble".

"Save Data" button would save data to your phone storage and "Load Saved Data" button would display list of stocks saved to your phone.

You can use this calculator literally anywhere, after all, it comes with your phone. It’s easy to use, all you need is to find and load annual report to your phone using internet browser as PDF file, search for required values, cut and paste values to the calculator and press Calculate button. Now you know if the stock is the bargain or overvalued based on company’s annual report and not on subjective calculations of various market analysts who could be biased based on their own long or short position on particular stock.

This calculator can be used at any country, any stock market and numbers can be presented in any currency. The only requirement: company must submit annual reports.

Our calculator requires Annual or Monthly subscription. Each subscription comes with 1 month FREE trial. You will not be charged until 1 month FREE trial is over. You will have full access to all features during free trial. Free trial will convert to a paid subscription after 30 days.

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Ratings and reviews

Easy to use! Takes only a couple of minutes to find and download company's annual report to the phone and a couple more minutes to copy and paste all the required values from the report to the calculator. The only thing I wish it would have is more preloaded examples of popular stocks, including stocks trading at the bargain prices.

Thank you for creating automated calculator. This is useful when comes to calculation. Aside having like only 9 examples to select, it would be sweet to have direct access at certain stock exchange eg NYSE (access to the data source, add search function and to pop up suggested name according to the text we key in) I believe accessing to stock exchange like how we search at Bloomberg etc will help promote this apps to all others out there.

Its very convenient. I've been using it for several months now. It did take some time to enter and save the data from the annual reports of the stocks I'm watching. The good thing is that some of the stocks I'm watching were already preloaded as examples. Now I just need to update the price to see the results of comparison to the intrinsic value. The best part is that my portfolio is always with me. I don't need a computer, all I need is my phone!

What's new

Added Nvidia example. Warren Buffett's Owner earnings formula choke on it due to Maintenance and Capital Expenditures of $463.2 BILLION is 163 times greater than sum of all other assets used in Buffett's formula. It results in negative intrinsic value of -$1,864. It basically means that in case of liquidation Nvidia shareholders will get ABSOLUTELY NOTHING -> $0.