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Intrinsic Valuation

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The Valuation method that we adopt is a Return on Equity based system which looks at the equity in a company and more importantly the return that the equity is generating.

In the below, (FAve) NROE is the Forecast Average Normalized Return on Equity which considers the NROE that the company has most recently achieved along with the forecast NROE of the coming 2 years.

The Required Return is derived from the Quality Rating and is an important input into the Valuation formula.

The Margin of Safety formula is MOS = (Intrinsic Value - Share-price) ÷ Intrinsic Value

The below Valuation is completed on around 900 of the most profitable US listed companies that make up the Intrinsic-Valuation.com database.


IV Example