
Margin of safety: how we account for being wrong
It's impossible to predict the future, but with a 20% margin of safety against our calculated fair value, we can afford to be wrong. If Sunbeam & Cloud Ltd's…
Tool
Calculate fair value using Discounted Cash Flow. Adjust cash flow, growth rate, terminal value and discount rate to understand how each assumption affects the valuation.
Guide
DCF gives a fair value estimate based on your assumptions. The result is sensitive to the discount rate and the long-term growth rate. Try changing these to see how much the value moves.
Learn more
Read our explanation of DCF in the glossary: what it measures, how the terminal value works, and why assumptions matter more than the formula.
DCF in the glossaryNote: our newsletter is currently in Swedish only.
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