Intrinsic Value and ROI Calculator

Author:

Moneyzine Editor

2 mins

October 4th, 2023

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You can use this intrinsic value and return on equity (ROI) calculator to help you evaluate a stock you might be researching. The calculator only requires three inputs: the current market price of the stock you're examining, the stock's earnings per share estimate, and the risk free interest rate.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Current Stock Market Price ($ / Share)

Additional Resources

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This value is simply the current market price of the stock you're examining, stated in dollars per share.

Earnings per Share Estimate ($ / Share)

This is the stocks earnings per share, which can be an estimate of future earnings, or stated in terms of historical earnings. If you're calculating intrinsic value or expected return on investment, you'd be using a predicted / earnings estimate. If you're evaluating the historical performance, you would be using earnings as reported by the company in the past.

Risk Free Interest Rate (%)

This is the risk free rate of interest. Most stock analysts use the interest rate on a one year Treasury Bill (T-Bills) as a proxy for the risk-free rate of interest.

Intrinsic Value ($ / Share)

This is the calculated intrinsic value for this security, stated in dollars per share.

Return on Investment (%)

This is the return on investment for this stock, which is based exclusively on the earnings estimate. This particular calculator does not take into account a rise in the market price of the stock over time.

Intrinsic Value and ROI Calculator

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

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