Margin of Safety Calculator
This tool is used to calculate safety marign based on intrinsic value of a stock and current Price instantly.
Formula To Calculate Margin of Safety :
Retention ratio is the difference between the intrinsic value of a stock and its market price.
To calculate the Margin of safety (financial), use the following formula
Margin of Safety = 1 - (Stock Current Price / Stock Intrinsic Value)
Company XYZ stock has a current price of $15 and intrinsic stock value of $20.
= 1 - (15/20) = 0.25 = 25%