What is Fair Value?
A stock's fair value is its real or underlying intrinsic worth. It is an unbiased calculation of the potential market price and is useful in fundamental analysis to estimate the value of a company from future cash flows.
What Data Sources does InvestingPro use for the Fair Value Calculations?
Great analysis needs to start with great data. That's why we partnered with a highly reputable data provider like S&P Global Market Intelligence. InvestingPro users get to work with the same data used by some of the largest investment banks and money managers in the world. The default assumptions used in models are based on consensus analyst estimates when available.
How does InvestingPro Fair Value work?
The InvestingPro Fair Value card uses financial modeling technology to determine the value of stocks around the world and estimate their fair value. These models are similar to what an analyst at an investment bank or equity research firm would spend their day building. Best of all, InvestingPro provides an overview of each model for a better understanding of the data. InvestingPro’s technology also makes it possible for you to identify companies that may be overlooked by investors (undervalued) or overhyped by manic news cycles (overvalued) based on these fair value estimates.
In this segment, you will be able to check what is the average target price, its possible upside, and the uncertainty of that specific stock.
InvestingPro’s Fair Value displays key metrics for users in order to evaluate the stock fair value. It includes a sum of multiple top analysts' price targets,(Analyst Targets), as well as how did the stock behave in the last 52 weeks (Market Range) and our own InvestingPro Model (InvPro Model), based on multiple valuation models, which can be further tailored to your expectations.
In this segment, you will be able to check what is the average target price, its possible upside, and the uncertainty of that specific stock.
InvestingPro’s Fair Value displays key metrics for users in order to evaluate the stock fair value. It includes a sum of multiple top analysts' price targets,(Analyst Targets), as well as how did the stock behave in the last 52 weeks (Market Range) and our own InvestingPro Model (InvPro Model), based on multiple valuation models, which can be further tailored to your expectations.
How can I create my personalized InvPro Model?
First, you need to access it, in order to do so, please tap "Models" and scroll down the segment, where you will be able to select the desired valuation models by tapping at the check box near the model name.
Please notice that it will be displayed as default the valuation result per model already when you select it.
Have more questions?
If you haven’t found the answers you were looking for, please go to the Investing Help Center for additional information.
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