BOOK VALUE = EQUITY / SHARES PURCHASE PRICE = BOOK VALUE +16% PROFIT TARGET ≈ 1.3% OF COST PAYBACK YEARS = (MARKET − BOOK) / (BOOK × 8%) EQUITY GROWTH = (BOOK − NOMINAL) / NOMINAL BOOK VALUE = EQUITY / SHARES PURCHASE PRICE = BOOK VALUE +16% PROFIT TARGET ≈ 1.3% OF COST
Free Valuation Tool — Calculator & Guide

Read a share the way an analyst reads a balance sheet.

Evaluate shares of companies listed on the stock exchange, free of charge. This page explains what the Share Valuation Tool does, the mechanism behind every number it produces, the data it needs from you, how to read the results, and where the tool's limits are — with a fully worked example.

Open the Valuation Tool Read the guide
Your inputs
Book value
Purchase price & cost
Target selling price
Profit, risk & efficiency ratios
Calculator

0Evaluate a share (free of charge)


All fields are required. Nothing you enter is saved or transmitted anywhere — the calculation runs once, on submission, and the result is shown immediately below.

Clarification required — click here
Regarding intellectual property rights

Property rights are considered a repository of historical records of events that took place within the company.

  • Shareholders' equity increases by adding various reserves and retained earnings to capital in previous years.
  • Equity decreases when there are no retained earnings but rather losses that have reduced the capital itself.
  • An increase in shareholders' equity can strengthen a company's financial position. However, it may also indicate a slowdown in dividend payouts to shareholders, especially if the increase in equity is very large.
Regarding the market share price and book value
  • Book value is the value that a shareholder is entitled to upon liquidation of the company (especially if the company's balance sheet figures reflect its true reality).
  • The likelihood of loss increases when the market price of the stock is higher than the book value (especially when there is a large difference between them and the market price then falls towards the book value).
  • If the book value is higher than the market share price at the time of purchase, this is very good — provided there are no losses in the company's capital value and the company is making profits.
Regarding the company's efficiency
  • Company efficiency levels are: Excellent – Very Good – Good – Acceptable – Pass – Very Weak – Losses.
  • Efficiency refers to the ability of a company's management to utilize its available resources (own funds, credit facilities, or external credit) to generate profits commensurate with those resources.
  • This efficiency must be reflected in the ratio of earnings per share to its book value, not its nominal value, for two reasons: reserves and retained earnings should be rewarded with further profit generation, and a buyer purchases the share based on its book value, not its nominal value, protecting the rights of the company's founders.
Overview

1What the tool is


The Share Valuation Tool is a free, browser-based calculator built into this site that turns a handful of figures from a company's balance sheet and trading screen into a single, structured valuation report for one share.

You type in raw figures — nominal value, total equity, number of shares, net profit, total assets, and the share's recent trading range — and the tool returns book value, a suggested fair purchase price, a target selling price, expected profit and profit ratio, payback period, the company's liquidation exposure, and an efficiency rating, all on one page. Nothing is saved or transmitted anywhere: the calculation runs once, on submission, and the result is displayed immediately.

Objective

2Why it exists


Most public balance sheets and trading screens give you raw numbers, not a judgment. The tool's purpose is to close that gap in seconds, without a spreadsheet or a finance background.

Turn raw data into a decision

Convert scattered figures (equity, assets, profit, price) into one coherent valuation: is the current market price cheap, fair, or expensive relative to book value?

Standardize the judgment

Apply one consistent method to every company you check, instead of an ad-hoc, back-of-envelope estimate that changes each time.

Flag structural risk early

Surface liquidation exposure and management efficiency — two things price alone does not tell you — before you commit capital.

Make the maths accessible

Replace formulas most retail investors never learned with a short form and a plain-English result.

Mechanism

3How the calculation works


The tool runs your inputs through a fixed, five-stage pipeline. Each stage feeds the next, exactly like a real valuation workflow: you always establish book value first, price the purchase from it, then work out an exit, then measure profitability and risk around that exit.

STAGE 1

Book value

Total equity is spread across the number of issued shares to get what each share is really backed by on the balance sheet.

book value = equity ÷ shares
STAGE 2

Purchase price & cost

A fair purchase price is set 16% above book value, then the broker's commission is added to get your true entry cost.

price = book value × 1.16
cost = price + (price × commission)
STAGE 3

Target selling price

A 1.3% profit margin is applied to your cost, the selling commission is layered on, and the three are summed into a target exit price.

selling price = cost + profit + selling commission
STAGE 4

Profit & deal size

Profit per share and its percentage are derived from the exit price, then scaled to however many shares your minimum purchase unit buys.

profit % = (profit ÷ cost) × 100
STAGE 5

Risk & efficiency

The tool positions the current high/low trading range against your entry price, estimates a payback period, checks liquidation exposure, and rates management efficiency from net profit versus assets.

efficiency = f(assets, net profit)
Inputs

4Data you need to provide


All fields on the form are required. Four are identifying text fields; the rest come straight from the company's latest financial statements and trading screen. Have these ready before you open the tool:

Identification
FieldWhat to enter
Company codeThe stock's ticker or listing code on its exchange.
Company nameThe company's registered or trading name.
SectorThe industry or sector the company is classified under.
CurrencyThe currency the financial statements and price are quoted in.
Financial statement figures
FieldWhat to enter
Nominal valueThe share's face (par) value as stated in the company's articles.
Total equityCapital + reserves + retained profits, minus any accumulated losses. Must be lower than total assets.
Number of sharesTotal issued shares. Cannot be zero.
Net profitNet profit for the period being evaluated. Must be lower than both equity and total assets.
Total assetsTotal fixed and current assets on the balance sheet for the evaluation year.
Market valueThe company's current per-share market value, on the same basis as book value.
Coupon valueAny coupon/dividend entitlement attached to the share, or zero if none.
Trading & order details
FieldWhat to enter
Highest priceThe highest price the share has traded at in the period you're reviewing.
Lowest priceThe lowest traded price in the same period. Must be lower than the highest price.
Buying & selling commissionYour broker's commission rate, entered as a decimal fraction (e.g. 0.0015 for 0.15%).
Minimum purchase unitThe smallest value your broker lets you buy in, used to size a sample deal.
Shares listedTotal shares listed on the exchange for this company.
Shares tradedShares traded in the period, which must not exceed the number listed.
Output

5Reading the results table


Submitting the form returns a single report. Its 28 fields fall into four natural groups — read them in this order for a coherent picture of the share.

Valuation & pricing

ColumnMeaning
Book valueWhat each share is worth per the balance sheet: equity ÷ shares.
Market priceThe fair purchase price the tool derives: book value plus 16%.
Purchase costPurchase price plus your broker's buying commission — your real entry cost.
Selling priceThe target exit price built from cost, target profit and selling commission.

Profitability

ColumnMeaning
Earnings per shareProfit generated per share between entry cost and target selling price.
Earnings per share ratioThat profit expressed as a percentage of your purchase cost.
Number of shares purchasedHow many shares your minimum purchase unit buys at the derived purchase price.
Profitability of the transactionTotal expected profit on that sample deal (shares × profit per share).

Price range & recovery

ColumnMeaning
Value / rate of the highest priceThe period's highest traded price and how far above your purchase price it sits.
Value / rate of the lowest priceThe period's lowest traded price and how far below your purchase price it sits — your downside reference.
Number of payback yearsRoughly how many years, at an assumed 8% annual return on book value, it would take the market value to justify itself against book value.

Structural risk & efficiency

ColumnMeaning
Equity change %How far book value has grown or shrunk versus nominal value — a proxy for accumulated reserves or losses.
Liquidation position"don't liquidation" when book value is at or above half of nominal value; "liquidation" when it has fallen below that threshold — a solvency warning flag, not a prediction.
Company efficiencyA six-tier rating — excellent, very good, good, acceptable, pass, or very weak — built from net profit against total assets, or "losses" if the ratio falls below 1.
Coupon percentageCoupon value as a percentage of purchase cost.
Percentage of shares tradedShares traded as a share of shares listed — a simple liquidity indicator.
Walkthrough

6A worked example


Here is a complete pass through the tool with realistic figures, so you can see exactly how inputs become results.

SAMPLE CO. · CODE 1010 · SECTOR: INDUSTRIAL CURRENCY: USD
Nominal value1.00
Total equity5,000,000
Number of shares1,000,000
Buying/selling commission0.15%
Highest price6.50
Lowest price4.80
Market value (per share)6.20
Coupon value0.00
Net profit800,000
Total assets7,500,000
Minimum purchase unit1,000
Shares listed1,000,000
Shares traded250,000
Book value5.00
Purchase price5.80
Purchase cost5.81
Selling price5.89
Earnings per share0.08
Earnings per share ratio1.30%
Shares purchased (sample deal)~172
Transaction profitability~13.02
Highest price rate+12.07%
Lowest price rate−17.24%
Payback years~3.0
Equity change+400%
Liquidation positionDon't liquidation
Company efficiencyGood
Shares traded ratio25%
Reading this result: book value (5.00) sits well above nominal value (1.00), so reserves have built up strongly and liquidation risk is low. The tool's fair entry price (5.80) is below the period's high (6.50) and 21% above the period's low (4.80) — the low end is where the real downside risk shows. Efficiency lands in the "good" band, and a 25% traded ratio suggests reasonable liquidity.
Applications

7Who this is for


Individual investors

Screen a share before buying: check whether the current price is trading above or below a book-value-anchored fair price.

Brokers & advisors

Produce a quick, consistent talking point for a client conversation without opening a spreadsheet mid-call.

Finance students

See book value, entry pricing, payback period and efficiency scoring applied step by step to real numbers.

Portfolio comparison

Run the same company through the tool at different points in time, or run several companies side by side, using one fixed method throughout.

Assessment

8Advantages & limitations


Advantages

  • Free to use, with no account, login or installation required.
  • Produces a full valuation — pricing, profitability, risk and efficiency — from one short form.
  • Applies the same fixed method every time, removing guesswork and inconsistency between checks.
  • Built-in validation catches inconsistent inputs (e.g. equity above assets, or a low price above the high) before they reach the calculation.
  • Results are instant and require no spreadsheet or manual formula work.
  • The evaluation report can be downloaded as a real PDF, generated on the server from the actual figures you entered.

Limitations

  • Every result is only as reliable as the figures you enter — the tool cannot verify them against the company's actual filings.
  • The 16% purchase premium, 1.3% profit target and 8% payback assumption are fixed constants, not tailored to any specific sector or market condition.
  • It reflects one balance-sheet-anchored valuation approach, not a substitute for discounted cash flow, peer comparison, or qualitative research.
  • Market value and book value must be entered on the same per-share basis, or the payback and liquidation figures will be distorted.
  • The tool does not account for macroeconomic conditions, sector cycles, or company-specific news.
  • Output is informational only and is not investment, legal or tax advice.

This guide and the linked tool are provided for educational and informational purposes only and do not constitute investment advice. Verify all figures against official company disclosures and consider consulting a licensed financial advisor before making investment decisions.

Ready to value a share?

Have your company's equity, share count, assets, net profit and recent price range ready, then run them through the tool.

Open the Valuation Tool