Cash flows and multiples
Explore DCF assumptions and valuation multiples separately. The valuation method can differ by company.
INTRINSIC VALUE
What is a stock really worth?
Look beyond today’s price. Select a company to explore its estimated intrinsic value.
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Understanding intrinsic value
Intrinsic value is an estimate of a company’s economic value. Depending on the company, the source uses a discounted cash flow model, relative valuation, or a combination. Three scenarios illustrate the effect of different assumptions.
Explore existing read-only models. Values are estimates, not guarantees or personalized investment advice.
Three scenarios, one perspective
Compare bear, base and bull cases. A valuation is a range of estimates, rather than a guaranteed price.
Read the financial statements
Inspect available financial history, profitability, cash flows and analyst views alongside the valuation.
How have valuations compared historically?
Explore the global backtestA closer look at the valuation
Why can price and intrinsic value differ?
Price is the amount at which the stock trades. Intrinsic value is a model estimate based on the business and its expected results. Market expectations, risk perceptions and the model’s assumptions can produce a gap between the two.
Which method is used for a company?
No. The supplied estimate may use discounted cash flows, valuation multiples or an equal blend of the two. The report identifies the selected method. A DCF model may be available to inspect even when the headline intrinsic value uses only multiples.
What do the three scenarios change?
Bear, base and bull cases reflect different assumptions about the company. They show how sensitive the valuation is to those assumptions. They are not probability forecasts and the base case is not a promised future price.
How is the valuation gap shown?
The absolute difference is divided by the larger of price and estimated value. Below-value and above-value labels therefore describe the selected model comparison; they are different from the return needed for the market price to reach that estimate.
Does a margin of safety remove risk?
A margin places an illustrative price below the base-case estimate. It leaves room for forecast error, but the underlying value can also change. Sardis’s margin calculator does not place orders or save a price alert.