What valuation methods does Intrinsic Investor use?
Up to 12 methods per stock — DCF, Graham Number, Owner Earnings, relative valuation, dividend models and more — combined as a weighted average with Monte Carlo uncertainty ranges.
Intrinsic Investor values each stock with the subset of its 12 methods that applies to that business — a bank is not valued like a software company.
The core methods: • Discounted Cash Flow (DCF) — projected cash flows discounted to present value • Graham Number — Benjamin Graham's √(22.5 × EPS × book value per share) • Owner Earnings — Warren Buffett's preferred cash-generation measure • Relative valuation — multiples against sector peers • Dividend models — for income-producing shares • Earnings power and book-value approaches for cyclical and asset-heavy names
Each applicable method produces its own estimate; the final fair value is a weighted average, and a Monte Carlo simulation turns the method disagreement into a probability range rather than a false single point.
The full methodology, including every formula, is published openly.
Source: Intrinsic Investor (https://www.intrinsic-investor.com)
This answer is for educational purposes only, not investment advice.