Margin of safety (financial)
Also known as: Margin of safety (financial) · safety margin
Community · Intrinsic value (finance)A margin of safety is the difference between the intrinsic value of a stock and its market price.
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risk management principle applied to intrinsic value estimates
This principle dictates that investors should only purchase assets when the market price is significantly below the calculated intrinsic value to provide a buffer against errors in estimation.