Stocks & Portfolios

Margin of Safety

Compare a user-estimated intrinsic value with an entered market price.

Your numbers

Sample inputs are illustrative. Changing currency changes labels only.

Your result

Preparing the sample calculation…

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How to use this calculator

  1. Enter your intrinsic-value estimate, market price.
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

Margin of safety = (estimated intrinsic value − market price) / estimated intrinsic value × 100%.

Assumptions and limitations

Both values are user-entered. Negative values indicate price above your estimate, not a prediction of a price fall.

Worked example

With your intrinsic-value estimate = 100, market price = 75, discount to estimated value is approximately 25%.

What the result means

The output is only as credible as the intrinsic-value estimate; a positive number does not make an investment safe.

Common questions

How should I interpret discount to estimated value?

The output is only as credible as the intrinsic-value estimate; a positive number does not make an investment safe.

What should I check before using this result?

Both values are user-entered. Negative values indicate price above your estimate, not a prediction of a price fall.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.