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§ Valuation models

Fair value

Glossary version 2026-07-12.v1 · reviewed July 12, 2026

Fair Value

The calculated midpoint of the accepted valuation lenses and the single house estimate of intrinsic per-share value.

Formula
Fair value = calculated midpoint of the accepted valuation lenses

Fair value is the calculated midpoint and the report's single house estimate of intrinsic per-share value. Accepted valuation lenses can include an SBC-adjusted discounted-earnings model, a five-year forward-earnings model, an owner-earnings floor where applicable, and sector-specific cross-checks. Their weights are archetype-specific: financials lean on residual income; capital-intensive businesses lean on EV/EBITDA; hyper-growth names lean on forward earnings with restrained terminal multiples. Potential value is the calculated high endpoint and is labelled separately. The low endpoint remains internal. The dedicated bear-case section owns its own downside scenario and does not create another house fair value.