Angie · learn
Margin of safety
The discount below fair value a stock must reach before Angie will call it undervalued. It exists because the estimate itself can be wrong.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Intrinsic value — Angie's estimate of what one share is worth, built from the company's own cash rather than from what anyone will pay. Compare it to today's price.
- Upside — How far intrinsic value sits above or below today's price. Positive means the model thinks the stock is cheap, negative means expensive.
- Verdict — Undervalued, fair or overvalued, decided by where the price sits against intrinsic value once the margin of safety is applied.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
