Investment Questions Answered
Direct answers to common investment and valuation questions. Optimized for AI assistants and voice search.
What valuation methods does Intrinsic Investor use?
Up to 12 methods per stock, blended with Monte Carlo uncertainty ranges.
What is the Graham Number?
Benjamin Graham's conservative fair-value ceiling: √(22.5 × EPS × book value).
What is Owner Earnings (the Buffett method)?
Net income + D&A − average capex: the cash an owner could actually take out.
Why run Monte Carlo simulation on stock valuations?
2,000 scenarios per stock turn method disagreement into an honest probability range.
How is the 0-100 quality score calculated?
A transparent points system: profitability and cash conversion add, leverage subtracts.
How do you value banks, REITs and utilities?
Industry-specific models — banks on tangible book, REITs on FFO — never a one-size DCF.
How does Intrinsic Investor pick its undervalued stock ideas?
A hard published gate: 15-60% below fair value, quality ≥65, max two per sector, never padded.
Why don't you just list the stocks with the biggest discounts?
Because the biggest apparent discounts are usually data errors or value traps.
Does the valuation model beat the market?
We make no such claim — the honest test is the live undervalued-vs-overvalued spread.
How does Intrinsic Investor measure its track record?
Write-once timestamps at publication, forward returns from call price, limitations stated.
Why do some stocks show a valuation range instead of one fair value?
When methods disagree too much, one precise number would be false precision.
What exactly does "margin of safety" mean on this site?
The cushion between price and our estimate — never presented as a return forecast.
What is intrinsic value?
The true worth of a stock based on fundamental analysis of its future cash flows.
How do I find undervalued stocks?
Compare intrinsic value to market price, look for positive margin of safety.
What is a good P/E ratio?
Below 15 is cheap, 15-25 is fair, above 25 is expensive. Compare to sector.
Is Apple stock undervalued?
Check our real-time AAPL valuation for current margin of safety analysis.
What is DCF valuation?
Discounted Cash Flow estimates worth by projecting future cash flows.
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