Valuation · updated October 21, 2026
What is the fair value of a stock
Fair value is an estimate of what a stock is worth based on the cash the company will produce, not on where it trades today. When the price is well below fair value, the stock looks cheap; when it is well above, it looks expensive.
How it is calculated
On einvestitii.ro, fair value is our own estimate and blends several methods: discounting future cash flows (DCF), multiples justified by profitability, and comparison with similar companies. Each method gives a number; we keep a central value and the range between the lowest and highest.
We calculate this one ourselves. Below you can see what goes into it and how to read it; we do not publish the exact weights. The full details are in our Methodology.
See the MethodologyHow to read fair value
Fair value is a range, not an exact number. A gap of 5-10% from the price is within the margin of error of any estimate.
When fair value can fool you
Assumptions: slightly higher growth or a slightly lower interest rate changes the result a lot. Changing companies: for young or restructuring companies, every estimate is less certain.
Related terms
Questions about fair value
Is fair value the price the stock will reach?
No. It is an estimate of what the business is worth. The price can stay below or above it for a long time.
Why does it differ between websites?
Because each one uses different methods and different growth and risk assumptions.
These explanations are for information only. They are not a recommendation to buy or sell.
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