Equities & Derivatives Calculators

Price European calls and puts with the Black-Scholes-Merton model — live Greeks, an implied-volatility solver, the profit-and-loss payoff at expiry, and the full working shown step by step. Educational, not trading advice.

Price European and American calls and puts on a Cox-Ross-Rubinstein lattice — watch it converge to Black-Scholes, and see the early-exercise premium that closed-form models miss. Educational, not trading advice.

Price options by simulating thousands of random price paths, watch the estimate converge to Black-Scholes, and see how the standard error shrinks with the square root of the path count. Educational, not trading advice.

Find the return an investment should earn for its market risk with the Capital Asset Pricing Model — risk-free rate plus beta times the equity risk premium, broken down step by step.

Value a dividend stock with the Gordon Growth model — the present value of all future dividends from D₁ ÷ (r − g) — and see why the result is so sensitive to the spread between return and growth.

Estimate intrinsic value by discounting projected free cash flows plus a terminal value back to today — with a per-year breakdown and how much of the value rests on the terminal assumption.

Compute the weighted average cost of capital — the blend of the cost of equity and the after-tax cost of debt by their weights — the discount rate that powers a DCF.

Price a bond from its yield, or solve the yield to maturity from a market price — with the premium/discount, current yield, and the cash flows behind the number. Educational, not trading advice.

Measure risk-adjusted return: the excess return over the risk-free rate per unit of volatility, with the calculation shown step by step. Educational, not investment advice.

Price a forward or futures contract by cost-of-carry — spot grown by financing and storage, less income and convenience yield — and see whether the market is in contango or backwardation. Educational, not trading advice.

Visualize the profit-and-loss at expiry for spreads, straddles, strangles, covered calls, and iron condors — with Black-Scholes-priced legs, break-evens, and max profit and loss. Educational, not trading advice.

Chart delta, gamma, vega, theta, and rho across the underlying price to see how an option’s risk sensitivities shift as the spot moves toward and past the strike. Educational, not trading advice.

Compute Macaulay and modified duration plus convexity, and see how the two together estimate a bond’s price change for a yield move far better than duration alone. Educational, not investment advice.

Net present value of a cash-flow series at your discount rate — with the per-period discounting, the profitability index, and a clear accept/reject signal. Educational, not investment advice.

The internal rate of return — the discount rate at which a project’s NPV is zero — solved numerically, with the NPV profile drawn so you can see exactly where it crosses zero. Educational, not investment advice.

Present value of a level or growing perpetuity (C ÷ r, or C ÷ (r − g)) — the engine behind dividend-growth valuation and DCF terminal values. Educational, not investment advice.

Risk-adjusted return using downside deviation only — the refinement of the Sharpe ratio that stops penalising upside volatility, shown side by side with Sharpe on your data. Educational, not investment advice.

The probability-weighted expected return across scenarios, plus the variance and standard deviation that measure its risk — the foundation of portfolio theory and CAPM. Educational, not investment advice.

Market cap from share price and shares outstanding, with the mega/large/mid/small/micro-cap tier — the equity value the market places on the whole company. Educational, not investment advice.

Enterprise value — the true takeover cost of a business: market cap plus debt, preferred, and minority interest, less cash — built up step by step from the balance sheet. Educational, not investment advice.

The price-to-earnings ratio from share price and EPS (or net income and shares), plus the earnings yield it implies — the most-quoted valuation multiple. Educational, not investment advice.

The P/E-to-growth ratio that puts a high multiple in context — a 30× P/E is cheap if earnings grow 30% a year — with a plain-English read on whether growth justifies the price. Educational, not investment advice.

The enterprise-multiple that values the whole business against its cash earnings — capital-structure-neutral, so debt-heavy and debt-free firms compare on equal footing. Educational, not investment advice.

The P/B ratio comparing market price to accounting book value, with the premium or discount to book — most telling for asset-heavy businesses like banks. Educational, not investment advice.

Return on equity — net income as a percentage of shareholders’ equity — the headline measure of the return a company earns on its owners’ capital. Educational, not investment advice.

Return on assets — profit as a percentage of everything the company owns — showing how efficiently its whole asset base is turned into earnings, unflattered by leverage. Educational, not investment advice.

Return on invested capital — after-tax operating profit (NOPAT) over the capital put to work — the truest test of operating quality, and the number to compare against the cost of capital. Educational, not investment advice.

Return on capital employed — operating profit over long-term capital (assets minus current liabilities) — a pre-tax measure favoured for capital-intensive companies. Educational, not investment advice.

Return on sales — operating income as a percentage of revenue — the operating margin that captures pricing power and cost control before financing and tax. Educational, not investment advice.

Decompose return on equity into profit margin, asset turnover, and financial leverage — the DuPont identity that reveals what is really driving a company’s ROE. Educational, not investment advice.

A bond’s current yield — annual coupon income as a percentage of its market price — and how it sits between the coupon rate and the yield to maturity at a premium or discount. Educational, not investment advice.

The cash coupon a bond pays each period — face value times coupon rate, split by frequency — plus the annual income and the total coupons over the bond’s life. Educational, not investment advice.

Recover a bond’s coupon rate from its periodic payment and face value — the fixed rate set at issue, which (unlike the yield) never changes with the market price. Educational, not investment advice.

Annualize the yield on a discount instrument like a T-bill — the bond-equivalent yield (gain on price, 365-day year) alongside the quoted bank-discount yield, so it compares with coupon bonds. Educational, not investment advice.

The pre-tax yield a taxable bond must offer to match a tax-free municipal bond in your tax bracket — and a side-by-side check of which one actually wins. Educational, not investment advice.

Earnings per share — profit for common shareholders divided by shares outstanding, with preferred dividends removed first. The per-share building block behind the P/E and PEG ratios. Educational, not investment advice.

Total and annualized (compound) growth in earnings per share between two periods — the engine behind the PEG ratio and a core test of whether a high multiple is justified. Educational, not investment advice.

Benjamin Graham’s ceiling for a defensive buy — √(22.5 × EPS × book value per share) — plus the margin of safety versus the current price. Educational, not investment advice.

Per-share intrinsic value via Graham’s revised formula — EPS × (8.5 + 2g) discounted by the corporate bond yield — with the margin of safety against today’s price. Educational, not investment advice.

Net asset value per share — total assets minus liabilities, divided by shares — the figure mutual funds price at and the benchmark for premiums and discounts. Educational, not investment advice.

How efficiently a company turns its assets into sales — revenue divided by total assets, the efficiency lever in the DuPont breakdown of return on equity. Educational, not investment advice.

How many times a year a company sells and replaces its inventory — cost of goods sold over average inventory — plus the days-inventory-outstanding holding period. Educational, not investment advice.

How quickly a company collects what it is owed — credit sales over average receivables — with the days-sales-outstanding average collection period. Educational, not investment advice.

Core operating profitability before financing, tax, and depreciation — EBITDA as a percentage of revenue — for comparing companies with different capital structures. Educational, not investment advice.

The share of earnings a company keeps to reinvest rather than pay out — the plowback ratio, equal to one minus the dividend payout, and the input to sustainable growth. Educational, not investment advice.

The fastest a company can grow funding itself — return on equity times the retention ratio — without raising new equity or increasing leverage. Educational, not investment advice.

How many days, on average, a company takes to pay its suppliers — accounts payable over COGS — the third leg of the cash conversion cycle. Educational, not investment advice.

How many days cash is tied up between paying suppliers and collecting from customers — days inventory plus days sales minus days payable. A negative cycle means suppliers fund the business. Educational, not investment advice.

Roll retained earnings forward — beginning balance plus net income minus dividends — the running total of profits a company has kept rather than paid out. Educational, not investment advice.

The interest rate the yield curve implies for a future period, derived by no-arbitrage from two spot rates. Educational, not investment advice.

How much of a stock’s price is growth expectation — the present value of growth opportunities, price minus the value of its earnings as a no-growth perpetuity. Educational, not investment advice.