Margin of Safety Calculator

Find The Right Price To Buy

Enter a stock symbol to pull live data, then walk through each step to find a margin of safety price target.

Your Inputs

$

Earnings per share, trailing 12 months

%

Annual EPS growth estimate

5–10 yr average PE

$

Today's market price

%

Annual return you require (default: 15%)

%

Discount applied to sticker price (default: 50%)

Fields auto-fill from live data when available. Growth rate and PE are your assumptions — adjust them to model different scenarios.

Enter the Current EPS, Growth Rate, and Historical PE to see your Margin of Safety price.

The Calculation, Step by Step

1

Current EPS

Starting point

Trailing 12-month earnings per share:

2

Estimated Growth Rate

Your assumption

Projected annual EPS growth over 10 years:

3

Future EPS

10-year projection

Current EPS × (1 + growth rate)10

4

Future PE Ratio

Historical PE

Historical PE ratio:

5

Future Stock Price

10 years from now

Future EPS × Future PE

6

Sticker Price

Present value at 15% return

Future Price ÷ (1 + 15%)10

7

Margin of Safety Price

Your maximum buy price

Sticker Price × (1 − 50%) = 0.50

Here is the framework for this calculator: project EPS 10 years forward using an estimated growth rate, apply a conservative PE, discount back at a 15% required return, then halve the result for a 50% margin of safety. Not financial advice.

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