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Ten Cap Calculator

This tool helps you calculate the Ten Cap price of a company, a method inspired by Warren Buffett to estimate the value of a stock based on its owner earnings. The calculator is embedded directly on this page, making it easy to input your data and get instant results.

How to Use This Calculator

Find the Required Inputs:

  • Cash from Operations: Found in the company’s cash flow statement.

  • Capital Expenditures (CapEx): Listed in the cash flow statement.

  • Tax Provision (or Income Tax Expense): Found in the income statement.

  • Shares Outstanding: Found in the company’s balance sheet or investor reports.

If you’re using Finbox, you can find these metrics in seconds. Note that Tax Provision is listed as Income Tax Expense on Finbox.

Enter the Values into the Calculator Below:

  • The calculator will compute the Ten Cap price instantly.

Understand the Results:

  • Ten Cap Price (with 50% Discount): The calculator already applies a 50% discount to the calculated price, so the result is the discounted price you should aim to pay for the stock.

Why Use the Ten Cap Method?

The Ten Cap method focuses on a company’s owner earnings to determine its value, ensuring that you only buy stocks that offer a strong annual return (ideally 10% or higher). By including a 50% discount in the calculation, this method also builds in a margin of safety, reducing your risk.

Start Your Analysis

Use the calculator below to analyze stocks and find a safe price to invest in. Refer to the instructions above if you’re unsure about the inputs.

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© 2020 by Glenn Jørgensen.

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