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Margin Of Safety (other)
Margin of safety may refer to: *Margin of safety (financial) in a financial context *Margin of safety (medicine) for pharmaceutical drugs *Margin of safety (accounting) in cost accounting *Margin of safety (engineering) In engineering, a factor of safety (FoS), also known as (and used interchangeably with) safety factor (SF), expresses how much stronger a system is than it needs to be for an intended load. Safety factors are often calculated using detailed analy ... in structural engineering * ''Margin of Safety'' (book), by Seth Klarman {{disambig ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Margin Of Safety (financial)
A margin of safety (or safety margin) is the difference between the intrinsic value of a stock and its market price. Another definition: In break-even analysis, from the discipline of accounting, margin of safety is how much output or sales level can fall before a business reaches its break-even point. Break-even point is a no-profit, no-loss scenario. History Benjamin Graham and David Dodd, founders of value investing, coined the term margin of safety in their seminal 1934 book, ''Security Analysis''. The term is also described in Graham's ''The Intelligent Investor''. Graham said that "the margin of safety is always dependent on the price paid". Application to investing Using margin of safety, one should buy a stock when it is worth more than its price in the market. This is the central thesis of value investing philosophy which espouses preservation of capital as its first rule of investing. Benjamin Graham suggested to look at unpopular or neglected companies with low P/E ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Margin Of Safety (medicine)
The therapeutic index (TI; also referred to as therapeutic ratio) is a quantitative measurement of the relative safety of a drug. It is a comparison of the amount of a therapeutic agent that causes the therapeutic effect to the amount that causes toxicity. The related terms therapeutic window or safety window refer to a range of doses which optimize between efficacy and toxicity, achieving the greatest therapeutic benefit without resulting in unacceptable side-effects or toxicity. Classically, in an established clinical indication setting of an approved drug, TI refers to the ratio of the dose of drug that causes adverse effects at an incidence/severity not compatible with the targeted indication (e.g. toxic dose in 50% of subjects, TD) to the dose that leads to the desired pharmacological effect (e.g. efficacious dose in 50% of subjects, ED). In contrast, in a drug development setting TI is calculated based on plasma exposure levels. In the early days of pharmaceutical toxico ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Margin Of Safety (accounting)
The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return. In short, all costs that must be paid are paid, and there is neither profit nor loss. Overview The break-even point (BEP) or break-even level represents the sales amount—in either unit (quantity) or revenue (sales) terms—that is required to cover total costs, consisting of both fixed and variable costs to the company. Total profit at the break-even point is zero. It is only possible for a firm to pass the break-even point if the dollar value of sales is higher than the variable cost per unit. This means that the selling price of the goods must be higher than what the company paid for the good or its components for them to cover the initial price they paid (var ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Margin Of Safety (engineering)
In engineering, a factor of safety (FoS), also known as (and used interchangeably with) safety factor (SF), expresses how much stronger a system is than it needs to be for an intended load. Safety factors are often calculated using detailed analysis because comprehensive testing is impractical on many projects, such as bridges and buildings, but the structure's ability to carry a load must be determined to a reasonable accuracy. Many systems are intentionally built much stronger than needed for normal usage to allow for emergency situations, unexpected loads, misuse, or degradation (reliability). Definition There are two definitions for the factor of safety (FoS): * The ratio of a structure's absolute strength (structural capability) to actual applied load; this is a measure of the reliability of a particular design. This is a calculated value, and is sometimes referred to, for the sake of clarity, as a ''realized factor of safety''. * A constant required value, imposed by law, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
