Practice Lab

Work the numbers yourself

Hypothetical inputs for learning. Invalid or zero inputs show “—” instead of misleading results.

Margin of safety

Estimated value ($)100

Market price ($)70

Discount to value30.00%

Potential move to value42.86%

A discount only protects you if your value estimate is sound.

Nominal return6%

Inflation3%

Years20

Real return / yr2.91%

Approximation (n − i)3.00%

$10,000 in today's dollars$17,757

Exact formula: (1 + nominal) ÷ (1 + inflation) − 1.

Net income ($m)10

Shares outstanding (m)5

New shares issued (m)1

Share price ($)30

EPS before$2.00

EPS after issuance$1.67

EPS change-16.67%

P/E after18.0

EPS = net income ÷ shares (here: full-year shares). P/E is undefined for zero or negative EPS.