Tool · Valuation calculator
Residual income calculator
What this is warning you about first. residual income is only as good as book value quality. For financials, credit marks and capital adequacy come before the midpoint.
Model
Excess return
Valuation approach
Primary input
Book value
User supplied
Output
Range
Based on your assumptions
Methodology
Shared
Used in our stock reports
Inputs are manual assumptions unless a dated source context is shown. Results are not live market data and the calculation timestamp appears with each output.
Saved workbooks are private: Free includes 3, Individual 10, and Professional 100.
Calculator model
Residual income calculator
Anchor valuation to book value and excess ROE above cost of equity, especially for financials.Recomputed sensitivity
Every cell recalculates the value with the selected offsets.
How to use this calculation
From calculation to research
Find companies earning above their cost of equity
- Wide-moat compounders →Researched companies with ROIC of at least 15% and gross margin of at least 40%.
- Check your assumptions against a live SEC-backed stock report →A full published report: filed financials, valuation models, fair value, potential value and sources.
- Turn your criteria into a research brief →Describe what you are looking for and screen the researched universe for matching companies.
Review the assumptions behind your result using our valuation methodology, or compare other valuation calculators.
Frequently asked questions
- Is this the same model used in the stock reports?
- Yes. The calculator uses the same valuation method as our stock reports. Here you supply the assumptions; a report also considers company evidence, business risks and other valuation methods.
- Why might a calculation be unavailable?
- Some methods need particular inputs or apply only to certain types of business. Check the explanation beside the result, complete the required fields, or choose another method.
- Can I save a scenario?
- Yes. Sign in to save private valuation workbooks: 3 on Free, 10 on Individual, and 100 on Professional. Enter your own assumptions and revisit them as your estimates change.