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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.
Use trailing twelve-month EPS from the company's filings, not a forecast.
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.
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 its rated universe, each name with a data-quality score.
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Straight answers
What does this fair value number actually tell you?
It is Benjamin Graham's revised formula, EPS times (8.5 plus 1.5 times growth), applied to your inputs. It is an argument, not a measurement: two careful people with different growth assumptions will get different fair values from the same company.
Why does nudging the growth slider move the value so much?
Because growth is multiplied, not added: each extra point of assumed growth adds 1.5 points to the multiplier applied to EPS. Few companies sustain double-digit earnings growth for a decade, which is why the honest move is to test a low, middle and high growth case rather than defending one number.
If the price is below fair value, should I buy?
Not on that alone. A discount to your model is a reason to start reading, not to stop. The market may know something your inputs do not, and finding out what that is comes before any purchase. Nothing on this page is financial advice.
Educational information, not financial advice. Figures current as of July 2026 where dated; allowances and rates change, so check the source before acting.