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Fair value & margin of safety

The same earnings-power arithmetic that ranks the SteadyShares screener, with nothing hidden: move the growth slider and watch how much the answer depends on it. That sensitivity is the lesson.

Earnings per share (EPS)£5.00

Use trailing twelve-month EPS from the company's filings, not a forecast.

Expected annual earnings growth8%

The most dangerous slider on this page. Nudge it and watch the fair value swing: that sensitivity IS the lesson. Few companies sustain more than 10 to 12% for a decade.

Current share price£100.00

Fair value estimate

£102.50

Upside to estimate

+3%

Margin of safety

Thin margin, little protection. The margin of safety is your cushion if the estimate is wrong, and the estimate is always somewhat wrong. Graham wanted a third off; the thinner the margin, the more you are trusting the growth slider.

This is Benjamin Graham's revised formula: fair value equals EPS times (8.5 plus 1.5 times growth). It is an earnings-power heuristic, not a discounted cash flow: it knows nothing about debt, moats, dilution or cyclically inflated earnings, and it is most confident exactly when trailing earnings are at a peak. Treat it as a first read that tells you where to dig. SteadyShares runs this model with quality guards across 1,100+ stocks, each with a data-quality score.

See fair values on real stocks

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Educational information, not financial advice. Figures current as of July 2026 where dated; allowances and rates change, so check the source before acting.