What exactly does "margin of safety" mean on this site?
The percentage gap between our fair-value estimate and the current price — the cushion for being wrong. It is an estimate description, never a return forecast.
Margin of safety = (fair value − current price) ÷ fair value.
A 25% margin of safety means the price could rise 25% of the way to our estimate — or our estimate could be 25% too optimistic — before the cushion is gone. It measures how wrong we can afford to be, which is the core discipline of value investing.
Two honesty rules govern how it is displayed here: • It is never presented as "+25% upside." The model estimates value; it does not forecast returns. • Extreme values are treated as suspect, not exciting: beyond the sanity band the site says "no estimate" rather than publishing a number nobody should trust.
You can compute it yourself for any inputs with the free calculator.
Source: Intrinsic Investor (https://www.intrinsic-investor.com)
This answer is for educational purposes only, not investment advice.