Investing is always considered a complex thing and is usually complicated through different terms. Using some tools at the fair value calculator, one can simplify his investment just like a flow chart. Also, it will be handier and will potentially certain more successful.
Some premium databases provide all the necessary information one could be in dire need of for the stocks he is evaluating. In this way, it becomes more convenient for him to make his investment decision and then make it right without having any kind of doubt in his mind. There are many formulas available to calculate fair values and these let you have key figures along with the industry comparison and the average numbers.
Moreover, their premium members have access to these databases and their related calculations for any stock from anywhere in the world as many times as they desire. There are no restrictions for them. They can easily find all the advantages within the premium membership.
One can easily use this stock calculator to find out the profit or loss from his decision of buying or selling stocks. In addition, it will also calculate the return on investment for stocks and the break-even share price.
The Stock Calculator is very simple to use. Just follow the 5 easy steps below:
- First, enter the number of shares that are purchased
- Then, enter the purchase price per share, the selling price per share
- Now enter the commission fees for buying and selling stocks
- Specify the Capital Gain Tax rate (if applicable) and select the currency from the drop-down list (optional)
- Now, click on the ‘Calculate’ button to calculate your profit or loss.
Advantages of the Fair Value Calculator
Along with the current market price and the two fair prices for the share, it also provides the correct fair value with great accuracy. It must be kept in mind that if more key figures are provided to the calculator in the fair value, the more precise fair value will be obtained for the share.
The relative strength of the share depicts how good the share has done in comparison to all other shares in the database – overall market picture. So, the factor 1.4 in the last 6 months means that this share has performed better than the overall market by a factor of 1.4.
Moreover, an alternative scoring system is also available. It brings further key figures such as debt along with fair value and relative strength in relation.
One of these indicators is ROI – return on investment. It shows what percentage of the initial investment will return to you as your profit. You can measure it with the formula given below:
ROI = Profit / [(BP * No) + BC]
ROI is expressed as a percentage. For instance, an ROI of 100% means that if you spend a certain amount on stocks, your revenue will be two times higher than that amount. Also, this stock price calculator gives you a clear idea of when you should refrain from selling your stocks.