Price vs Fair value chart

The Price vs. Fair Value tool allows investors to clearly visualize how a stock's price has performed relative to its estimated fair value over time. The tool offers customization options, allowing users to set their own Fair P/E (Price-to-Earnings) multiple or choose from automatically calculated Fair P/E multiples. This flexibility enables investors to explore various valuation scenarios and gain insights into how different assumptions impact the stock's fair value.

Examples of usage:

Here are some examples of how you can use the Price vs Fair value chart to analyze stocks:

Visa - Price vs fair value

This chart compares Visa's stock price to its fair value over time, showing whether the stock is overvalued, undervalued, or fairly priced based on its earnings and earnings growth. Users can adjust the fair value calculation by setting a custom P/E multiple or using one of the automatically calculated multiples.

Applied Materials - Price vs fair value

The chart shows how Applied Materials' (AMAT) stock price has tracked against its calculated fair value, indicating periods of overvaluation or undervaluation.