Intrinsic value stock calculator

Unlock stock picks and a broker-level newsfeed that powers Wall Street. In This Article: In this article, we will take a look into The Walt Disney Co's (NYSE:DIS) DCF analysis, a reliable and data-driven approach to estimating its intrinsic value. Instead of using future free cash flow as in the traditional DCF model, the GuruFocus DCF calculator uses EPS without NRI as the default for the DCF model based on research that shows that historically stock prices have been more correlated with earnings than free cash flow. Warning! GuruFocus has detected 4 Warning Sign with DIS. As of 2025-03-05, The Walt Disney Co's intrinsic value as calculated by the Discounted Earnings model is $60.82. It's currently trading at a price of $109.01. Therefore, the margin of safety based on the DCF model is -79.23%. The company is modestly overvalued. The GuruFocus DCF calculator follows a two-stage model by default. This model consists of the Growth Stage and the Terminal Stage. In the growth stage, the company is experiencing faster growth, while in the terminal stage, a lower growth rate is applied because sustained rapid growth is not sustainable in the long run. The Walt Disney Co's intrinsic value estimated by Discounted Earnings model are arrived at by following assumptions and steps. Term Value Explanation EPS without NRI $5.27 GuruFocus DCF calculator uses EPS without NRI as the default because historically stock prices are more correlated to earnings than free cash flow. Discount Rate 11% An appropriate discount rate is typically the risk-free rate plus the risk premium of the stock market. GuruFocus uses the current 10-year Treasury Constant Maturity Rate of 4.24%, rounded up to the nearest whole number, which is 5%. A 6% risk premium is then added to arrive at the estimated discount rate. Growth Stage Growth rate

Excel template includes a visual representation of the discounted cash flow calculations in the form of a chart. This provides a quick and easy way for users to see how changes to inputs affect the calculated result, and to identify trends and patterns in the data.5. Sensitivity analysisThe DCF Model Discounted Cash Flow Excel Calculator includes a sensitivity analysis tool, which allows users to see the impact of potential changes in inputs on the final result. This provides greater insight into the risks and uncertainties associated with an investment, and helps to inform decision-making and risk management.6. User-friendly interfaceThe Excel template is designed to be easy to use, with a clean and intuitive interface. This makes it accessible to users with varying levels of experience with financial modeling and Excel, and reduces the potential for errors or mistakes in calculations.7. Detailed instructionsThe DCF Model Discounted Cash Flow Excel Calculator comes with detailed instructions, including explanations of key concepts and step-by-step guidance for using the template. This makes it accessible even to users who are not familiar with financial modeling, and ensures that calculations are accurate and reliable.The Excel Discounted Cash Flow (DCF) Calculator: An Essential Tool for Financial ModelingAs a financial analyst or investor, calculating the present value of future cash flows is an essential task in valuing stocks, bonds, and other financial instruments. One of the most widely used methods of cash flow valuation is the Discounted Cash Flow (DCF) analysis, which provides a framework for estimating the intrinsic value of an investment based on its future cash flows.Benefits of Using an Excel DCF Model The Excel DCF calculator provides a reliable and customizable tool for analyzing an investment's discounted cash flow. The free DCF model template available online can be a good starting point for beginners to learn about financial modeling with DCF. The Excel DCF calculator helps in stock valuation using DCF by enabling investors to model and forecast future cash flows, and estimate the intrinsic value of a company's stock. The DCF analysis provides a better picture of a company's financial health by providing an estimate

Buy or sell securities at pre-set prices, or the strike price. It’s therefore helpful to understand how the intrinsic value measures up to this strike price.The intrinsic value formula in this case is:Intrinsic Value = (Stock Price – Option Strike Price) x (Number of Options)When the strike price is higher than the price of current shares, these options would not have any intrinsic value. There is also no applicable intrinsic value when the strike price and market price are equal.However, in the case of stock options, there might be some extrinsic value even when there’s no intrinsic value. Extrinsic value looks at the external factors that impact the option pricing, such as time value. As a result, both intrinsic and extrinsic values should be considered.Understanding intrinsic value’s pros and consAs you can see from the variety in calculation methods, intrinsic value can hold many meanings. It can be used as part of a fundamental or technical analysis, taking quantitative, qualitative, and perceptual factors all into account.Advantages:Intrinsic value can uncover undervalued or discounted investment opportunities.It shows the amount of profit in options contracts.Disadvantages:Intrinsic value of options doesn’t show the full picture, as it’s missing extrinsic value factors like time value.There is no 100% accurate method to calculate intrinsic value, since it relies on estimations of future cash flows and risk.We can helpGoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.

There are numerous factors involved when assessing the value of any asset. One is its intrinsic value, which can be calculated either through objective analysis or a financial model. Here’s how it works.Intrinsic value definitionIntrinsic value is a term that describes what an asset is worth, but this can have slightly different applications. In options pricing, intrinsic value marks the difference between the asset’s current price and option strike price. In financial analysis, it’s used to work out a company’s underlying value according to the current market.In both cases, it uses a financial model or objective calculation to determine a figure of worth, rather than relying on the asset’s current trading price.Why is intrinsic value useful?Investors can make decisions based on current stock prices alone, but this doesn’t paint the full picture of an asset’s worth. With intrinsic value, investors are able to determine what the stock is really worth. This is particularly helpful for value investors who seek out undervalued stocks or other discounted investment options.How to calculate intrinsic valueThere are several calculation methods to choose from when working out an asset’s intrinsic value.Discounted cash flow analysisA discounted cash flow analysis (DCF) dives into a company’s cash flows to arrive at intrinsic value. There are three steps involved:Estimate future cash flows.Calculate the present value of future cash flows.Analyse present value to obtain intrinsic value.There’s no way to estimate a company’s future cash flows with 100% accuracy, but its financial statements are a reliable place to start. Investors will also need to research the company’s growth prospects.The DCF method looks at the company’s weighted average cost of capital (WACC) to discount future cash flows. WACC is the expected rate of return, which accounts for the time value of money. Using WACC, you can complete step two to bring future cash flows into the present. With those figures in hand, you can use the DCF model to estimate future revenue streams and rates of return. These give you an insight into whether the investment is worth pursuing.Financial Metric AnalysisA second way to work out intrinsic value is by applying a financial metric, like the price-to-earnings ratio. In this case, where r = expected earnings growth rate:Intrinsic Value = Earnings Per Share (EPS) x (1 + r) x P/E Ratio.Asset-based valuationA third option is to use an asset-based valuation to calculate a stock’s intrinsic value. The intrinsic value formula for this method is perhaps the simplest of the three:Intrinsic Value = Company Assets – Company LiabilitiesCompany assets would include both tangible and intangible assets, while liabilities would consist of any debts owed or similar.The downside to this type of intrinsic value is that it doesn’t take growth prospects into account, which usually leads to a lower valuation.Intrinsic value of stock optionsAs we’ve mentioned above, intrinsic value calculations can be applied not only to stocks, but also to call and put options. It’s used to calculate how much profit exists, or how “in-the-money” the option is. Options contracts give investors the right to