Margin of Safety (MOS) Calculator performs all the heavy lifting that is required to determine the Intrinsic Price (also referred to as the Fair Value price) of a publicly traded security.
MOS Calculator provides two methods for calculating the Intrinsic Price:
1 - Manual Method: User is prompted to enter values for Current Earnings Per Share (EPS), EPS Growth Rate (best estimate of the rate of growth of future earnings), and Future Price Earnings (best estimate of the future PE ratio).
2 - AutoFill Method (Full version only): User is prompted to enter a valid stock symbol (supported stock exchanges are NYSE, NASDAQ, Toronto, London, and Frankfurt). MOS Calculator will extract Current EPS of the stock and calculates EPS Growth Rate and Future PE.
MOS Calculator will then use the Current EPS, EPS Growth Rate, and Future PE values to determine the Intrinsic Price from market price in 10 years (default is 10 years but it is user configurable), assuming 15% annual rate of return (default is 15% but it is user configurable). Intrinsic Price formula is provided in the Definitions screen.
Margin of Safety (MOS) price is then calculated by applying 50% MOS Rate to Intrinsic Price (default MOS Rate is 50% but it is user configurable).
Features:
- User configurable Settings: Number of Years, MOS Rate, and Annual Rate of Return.
- Comprehensive Definitions screen.