Stock Valuation Calculator

Value stocks using multiple methods including DCF, P/E ratios, dividend discount models, and comparable analysis. Determine if a stock is overvalued, undervalued, or fairly priced.

Valuation Parameters

Stock Information

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Financial Metrics

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Growth Projections

Valuation Parameters

Required rate of return (WACC)

Comparable Companies

Stock Valuation Methods

Discounted Cash Flow (DCF)

  • • Values company based on future cash flows
  • • Considers time value of money
  • • Requires growth and discount rate assumptions
  • • Most comprehensive valuation method
  • • Sensitive to input assumptions

P/E Ratio Method

  • • Simple earnings-based valuation
  • • Compares to industry averages
  • • Good for mature, stable companies
  • • Less effective for growth companies
  • • Easy to understand and calculate

Dividend Discount Model

  • • Values based on dividend payments
  • • Best for dividend-paying stocks
  • • Assumes dividend growth continues
  • • Gordon Growth Model variation
  • • Not suitable for non-dividend stocks

Valuation Best Practices

Analysis Tips:

  • • Use multiple valuation methods
  • • Compare to industry peers
  • • Consider qualitative factors
  • • Apply margin of safety

Common Mistakes:

  • • Over-optimistic growth assumptions
  • • Ignoring economic cycles
  • • Using inappropriate discount rates
  • • Neglecting competitive dynamics