Question 1

What is Fair Price Index?

Accepted Answer

Fair Price Index is a stock valuation platform that calculates fair values for the top 10K stocks worldwide using a blended model of three independent valuation methods: DCF analysis (50%), relative valuation (30%), and analyst consensus (20%). Our goal is to help investors understand whether stocks are overvalued or undervalued based on fundamentals.

Question 2

Who is behind Fair Price Index?

Accepted Answer

Fair Price Index is built by the team behind Bulios, a social investing platform with over 200,000 investors across 6 languages. FPI is a standalone product focused exclusively on stock valuation data.

Question 3

Is this investment advice?

Accepted Answer

No. Fair Price Index provides informational content only and does not constitute investment advice. Fair value estimates are based on quantitative models and may not reflect all factors affecting a stock's price. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Question 4

Is Fair Price Index free?

Accepted Answer

The website is completely free with no registration required. You can browse fair values for the top 10K stocks, use all four calculators, read all education articles, and access the full glossary. The mobile app has a free tier for up to 15 stocks. Fair Price Index PRO unlocks unlimited stock tracking, advanced features, and priority support for $2.99/month.

Question 5

Can I use Fair Price Index for stocks outside the US?

Accepted Answer

Yes. We cover stocks on major exchanges worldwide including European markets (LSE, Euronext, Deutsche Börse), Canadian markets (TSX), Australian markets (ASX), Asian markets, and more. The same blended valuation methodology is applied consistently across all markets.

Question 6

How is the fair price calculated?

Accepted Answer

Fair price is calculated using a weighted blend of three valuation models. DCF (Discounted Cash Flow) analysis accounts for 50%, projecting future cash flows and discounting them to present value. Relative valuation accounts for 30%, comparing a stock's financial multiples against sector peers. Analyst consensus accounts for 20%, aggregating Wall Street price targets. This blended approach reduces the impact of any single model's weaknesses.

Question 7

How often is the data updated?

Accepted Answer

Fair values are recalculated daily after each market closes. This ensures our estimates incorporate the latest financial data, analyst estimates, and market prices. Fundamental data is refreshed quarterly following earnings releases.

Question 8

What is the FPI Rating?

Accepted Answer

The FPI Rating is our proprietary 0-10 company quality score. It combines six fundamental factors (profitability, quality, growth, debt, stability, valuation) with the Piotroski F-Score and Altman Z-Score into a single number. It measures company quality, not price attractiveness — a company can score 9.0 and still be overvalued.

Question 9

What is the difference between fair value and market price?

Accepted Answer

Fair value is an estimate of what a stock should be worth based on fundamental analysis — its earnings, cash flows, growth prospects, and financial health. Market price is what the stock actually trades for right now, driven by supply and demand. When market price is significantly above fair value, the stock may be overvalued. When below, it may be undervalued.

Question 10

Why are all the Magnificent 7 stocks showing as overvalued?

Accepted Answer

Our model reflects current fundamentals as they appear in financial statements. The market may be pricing in future growth not yet visible in reported earnings and cash flows. High-growth companies often trade at premiums to their current fundamental value because investors expect rapid future growth. This doesn't mean the market is wrong — it means the market is making assumptions about future performance that our model doesn't fully capture.

Question 11

How does Fair Price Index compare to other valuation tools?

Accepted Answer

Fair Price Index differentiates itself through our blended 3-method approach (DCF, relative, and analyst consensus), extensive coverage of the top 10K global stocks, free web access with no registration, daily updates, and interactive calculators. Many other tools rely on a single valuation method or require paid subscriptions for basic data.

Question 12

What calculators are available?

Accepted Answer

We offer four free interactive calculators: the DCF Calculator for intrinsic value from projected cash flows, the P/E Ratio Calculator for quick earnings-based valuation, the EV/EBITDA Calculator for debt-adjusted operating valuation, and the Graham Number Calculator for Benjamin Graham's classic value formula. All are free with no signup required.

Question 13

What is the DCF Calculator?

Accepted Answer

The DCF Calculator lets you run your own Discounted Cash Flow analysis on any stock. Input free cash flow, growth rate, discount rate, and shares outstanding, and it projects future cash flows to estimate fair value in real time. You can search for any stock to auto-fill company data.

Question 14

What education content is available?

Accepted Answer

We publish free in-depth guides covering core valuation concepts and methods. Topics include fair value, intrinsic value, DCF analysis, P/E ratio, EV/EBITDA, Graham Number, margin of safety, free cash flow, and how to tell if a stock is overvalued. Each article is 2,000-4,000 words with formulas, real examples, and interactive components. We also maintain a glossary with 43 investment terms.

Question 15

How do I use the P/E Ratio Calculator?

Accepted Answer

Enter any stock price and earnings per share. The calculator instantly shows the P/E ratio with a visual context indicator showing whether the ratio falls in deep value, value, fair, growth premium, or high expectations territory. Compare the result against sector benchmarks shown on the same page.

Question 16

What is the Graham Number Calculator?

Accepted Answer

The Graham Number Calculator applies Benjamin Graham's classic formula to estimate the maximum price a conservative investor should pay for a stock. Enter earnings per share and book value per share, and optionally the current price, to see if the stock passes Graham's value test.

Question 17

When will the app be available?

Accepted Answer

The Fair Price Index app has been submitted to both the Apple App Store and Google Play Store and is currently awaiting review. Once approved, it will be available for download on iOS and Android. Follow us on X/Twitter @fairpriceindex for launch announcements.

Question 18

What does the app offer beyond the website?

Accepted Answer

The mobile app includes push notifications when fair values change significantly for stocks you follow, a personal watchlist to track your favorite stocks, detailed fundamental data and FPI Rating for each stock, and a clean terminal-style interface designed for quick valuation checks on the go.

Question 19

What is the difference between Free and PRO?

Accepted Answer

The free tier lets you track up to 15 stocks with full fair value data and up to 2 push notifications per week. PRO unlocks the top 10K stocks, unlimited notifications, and priority support. PRO is $2.99/month and includes a 7-day free trial.

Question 20

How do push notifications work?

Accepted Answer

Fair Price Index sends three types of push notifications: fair price changes (when a stock's fair value shifts by more than 3%), valuation zone shifts (when a stock crosses the overvalued/undervalued threshold), and price drops (when a stock falls more than 5% intraday). You control which notifications you receive in the app settings.

Question 21

Can I try PRO for free?

Accepted Answer

Yes. PRO includes a 7-day free trial. You can cancel anytime during the trial and you will not be charged. The trial gives you full access to all PRO features including unlimited stock tracking and notifications.

Frequently Asked Questions

About Fair Price Index

How Fair Prices Work

Calculators and Learning Resources

Mobile App and PRO

Explore fair values for the top 10K stocks