Margin of Safety (financial)

Margin Of Safety (financial)

Margin of safety (safety margin) is the difference between the intrinsic value of a stock and its market price.

Another definition: In Break even analysis (accounting), margin of safety is how much output or sales level can fall before a business reaches its breakeven point.

Read more about Margin Of Safety (financial):  History, Application To Investing, Application To Accounting, Rare Book, Formula

Famous quotes containing the words margin and/or safety:

    Will not a tiny speck very close to our vision blot out the glory of the world, and leave only a margin by which we see the blot? I know no speck so troublesome as self.
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    There is always safety in valor.
    Ralph Waldo Emerson (1803–1882)