ProductPipeline CanvasNode LibraryAI AnalysisData SourcesOutputs & IntegrationsSolutionsBoutique RIAsQuantitative ArchitectsIndependent AnalystsUse CasesPricingResourcesIntrinsic Value ReportsBlogGlossaryAffiliate Program
Sign inGet started
Glossary

Margin of Safety

Margin of safety is the cushion between a stock's estimated intrinsic value and the price you actually pay for it. A larger margin of safety protects against errors in your analysis or unexpected bad news, which is why many value-oriented screens explicitly filter for stocks trading well below estimated fair value.

Related terms
Intrinsic ValueIntrinsic value is an estimate of what a company is actually worth based on its fundamentals - cash flows, growth, and risk - independent of its...No-Code Investment ResearchNo-code investment research refers to tools that let analysts build screening, scoring, and analysis workflows by configuring rules and logic visually...Insider Trading SignalAn insider trading signal is a data point derived from Form 4 filings - such as the size, timing, or clustering of insider buys and sells - used as an...P/E Ratio (Price-to-Earnings)The P/E ratio divides a company's stock price by its earnings per share, showing how much investors are paying for each dollar of profit. It is one of...
Back to the full glossary

Put the terms to work

Turn a research thesis into a repeatable pipeline that screens on what the filings and calls actually say. Free to start.

Get started freeExplore the product