Best Online Intrinsic Value of Stock Calculator in 2021 (Using Book Value and Dividend)

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Are you ready to use the intrinsic value of stock calculator? If yes, use it. There is no limitation. You can use it for free.

The intrinsic value of stock plays a key role in stock investing. Are you interested to know the intrinsic value of a stock? Then use the above intrinsic value of stock calculator. It uses the book value and dividend of stock to calculate the stock intrinsic value. If the book value and dividend of stock increase for the last 5-6 years, use the above calculator to find the intrinsic value of the stock.

Intrinsic-Value-of-Stock-Calculator

What is Stock Intrinsic Value?

The stock intrinsic value is the fair value of the stock. It is used when you are planning to invest in stocks for the long run. Before investing in a stock/share in the long term, be sure that the current market price of the stock/share should be less than the stock intrinsic value.

As a thumb rule, the current market price of the stock/share should be at least 25% less than the stock intrinsic value. Moreover, the stock/share should be fundamentally strong, i.e., quality stocks/shares. Otherwise, there is no meaning of using the stock intrinsic value.

How to Use the Intrinsic Value of Stock Calculator

The above intrinsic value of stock calculator is used to find the fair value of the stock, using the dividends of the stock.

You require the following four things to calculate the stock intrinsic value, using the intrinsic value of stock calculator.

  1. The dividend of the stock.
  2. The expected annual growth rate of the stock.
  3. The adjusted book value (TTM) of the stock.
  4. At last, you have to put the value of the 10-year risk-free return.

What is a Stock Dividend?

A stock dividend is a distribution of part of the profits of a company to its shareholders. Any amount that is not distributed is taken to be reinvested in the company, which is called the retained earnings.

You can find the past dividends of NSE & BSE stocks from Money Control Website.

Intrinsic Value of Stock Calculator - Dividend History

If a stock has good book value and dividend track reports, the above intrinsic value of stock calculator will be a good one, to find the fair value of the stock.

Intrinsic Value of Stock Calculator - Dividend Chart

What is the expected annual growth rate of a stock?

The expected annual growth rate of a stock is the growth estimates of the stock in the next 5-10 years. That means how the stock will perform in the next 5-10 years.

You can find the expected annual growth rate of major stocks from Yahoo Finance website’s Analysis section.

Intrinsic Value of Stock Calculator - Growth Estimates

If you want to find the expected annual growth rate of stock in a more correct way, you have to find the book value growth rate of that particular stock.

For this, you should know:

  1. The old book value of the stock.
  2. The present book value of the stock.
  3. The number of years in between.

You can use my online book value growth rate calculator (the link is given below) to find the book value growth rate of a stock. And it is available for free.

Online Book Value Growth Rate Calculator of a Stock

The book value growth rate of a stock is nothing but the expected annual growth rate of the stock, for the number of years considered.

You may also read:

Dividend

What is the adjusted book value (TTM) of a stock?

The adjusted book value of a stock is the measure of a stock’s valuation after adjusting the liabilities and assets, to reflect the fair market value of the stock. Here, TTM is the trailing twelve months.

For NSE & BSE stocks, you find it from Value Research Online Website. The snapshot is given below.

Intrinsic Value of Stock Calculator - Adjusted Book Value (TTM)

What is the 10-year risk-free return?

The 10-year risk-free return is the percentage of return what the market has already given for the last 10 years.

For NSE & BSE stock market, it is considered as 10%. For other country stock markets, use it as per the market data available for the last 10 years.

Now putting all the required values you can calculate the stock intrinsic value online using the above intrinsic value of stock calculator.

I hope you understand how to use the above intrinsic value of stock calculator.

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