A stock has a price, set by whoever last traded it, and a value, which is what the business is worth to a long-term owner. Intrinsic valuation estimates value from first principles: forecast the cash the business will generate, then discount that cash back to today at a rate that reflects its risk. The gap between value and price is the whole point of the exercise.
Benjamin Graham's margin of safety is the discount you insist on before buying, because every input to the model is uncertain. A 30% margin means you only buy when price is at most 70% of your value estimate. The dashboard reports both numbers next to the value per share.
Every model on the valuation page is a different route to the same destination. Discounted cash flow is the primary tool. Reverse DCF asks what the price already assumes. Dividend and residual income models value equity directly. Relative valuation checks the answer against how peers are priced. When they disagree, the disagreement is information.
Go deeper
- articleDamodaran: Approaches to valuation (lecture notes, packet 1) · The best free introduction. Everything in this app follows this framework.
- articleInvestopedia: Margin of safety
- articleMusings on Markets (Damodaran’s blog) · Real companies valued in public with all the assumptions shown.