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Topic: Margin of safety


  
  Factor of safety - Wikipedia, the free encyclopedia
Factor of safety (FoS), also known as Safety Factor, is a multiplier applied to the calculated maximum load (force, torque, bending moment or a combination) to which a component or assembly will be subjected.
Prime considerations are the accuracy of load and wear estimates, the consequences of failure, and the cost of overengineering the component to achieve that factor of safety.
This low safety factor is why aerospace parts and materials are subject to more stringent testing and quality control.
en.wikipedia.org /wiki/Factor_of_safety   (371 words)

  
 Margin of Safety as supplied by EagleTraders.com
The margin of safety for the principal of a mortgage bond issue is the excess of value of mortgaged property, or value of the remaining equity if subject to prior lien issues, over the par value of the amount outstanding.
The term “margin of safety” as a measure of the degree of protection afforded the principal sum invested in stocks seems never to have been used, since the value of stocks is usually thought to be dependent wholly on earnings available for such stocks as to bonds or any other form of debt.
Similarly, the margin of safety for the par amount of common stock outstanding would be the excess of the net tangible assets over the combined preferred and common stocks outstanding, e.g., $50,000 or 50%.
www.eagletraders.com /advice/securities/margin_of_safety.htm   (1276 words)

  
 Margin of Safety
Margin of Safety : Maximum amount of exposure producing no measurable effect in animals (or studied humans) divided by the actual amount of human exposure in a population.
The margin of safety associated with the use of cuffed paediatric...
Margin of safety for the human back: a probable consensus based on...
www.mongabay.com /reference/environment/Margin_of_Safety.html   (543 words)

  
 Margin of Safety
One way to judge whether or not a stock is undervalued is to use the margin of safety approach.
The margin of safety in the stock, relative to bonds, is (45-25)/45 or 44%.
If you are predicting high growth for a company, you'll want to use a large margin of safety in order to account for the possibility that the expected growth won't materialize.
www.bronsteinreport.com /marginofsafety.htm   (740 words)

  
 TCS: Tech Central Station - What's Your
Margin of Safety?
  (Site not responding. Last check: 2007-10-11)
The answer depends on how large a margin of safety one requires between the intrinsic value of stocks and the price that one is willing to pay.
Graham's "margin of safety" plays the role in stock market valuation that economists usually assign to something called "the risk premium." However, this is a case of bad economic jargon driving out a useful practitioner's concept.
That means that a ratio of two corresponds to Gross' margin of safety of 73 percent.
www.techcentralstation.com /101502B.html   (1396 words)

  
 What's your margin of safety?
And this is called the 'margin of safety.' This acts as a protection to investors against any loss in the event of some future decline in net profits.
Margin of safety means 'always building a 15,000 pound bridge if you are going to be driving 10,000 pound trucks across it' - Benjamin Graham.
However, having a stock with a high margin of safety is no guarantee that the stockbuyer would not face losses in the future.
www.rediff.com /money/2005/jan/17perfin.htm   (711 words)

  
 CEHN: News Release on Implementing the 10X Margin of Safety (FQPA)   (Site not responding. Last check: 2007-10-11)
Because children may be more susceptible to chemicals than adults and children's exposures to pesticides are different from adults, FQPA requires an additional 10-fold margin of safety be used in setting pesticide tolerances (the amount of the chemical allowed to remain on the food) to protect children's health.
The health-focused organizations, citing the scarcity of information on children's exposure and susceptibility to pesticides, asked the agency what data was used to lift the safety factor in those cases.
The organizations expressed their strong support for the safety margin.
www.cehn.org /cehn/fqparelease.html   (374 words)

  
 FSO Storm Watch Update "Margin of Safety" 01/18/2002   (Site not responding. Last check: 2007-10-11)
Benjamin Graham’s concept of “Margin of Safety” is as relevant today as it was yesterday, especially given the amount of leverage in the financial markets.
The margin of safety for bond investors lies in a company’s ability to earn in excess of what is required to meet its debt obligations.
To quote Graham, “...the function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.
www.financialsense.com /stormwatch/oldupdates/2002/0118.htm   (3214 words)

  
 Margin of Safety in the Asset-Class Era
No concept is more associated with Graham than the "margin of safety": that extra cushion of value which minimizes the probability of underperforming the default option of the prudent, risk-averse investor—the high-grade corporate bond.
the margin of safety is counted on to protect the investor against loss or discomfiture in the event of some future decline in net income.
He fell back on his usual advice to hold perhaps 50% of a portfolio in high-quality equity issues, sheepishly admitting that while such a list came nowhere near providing a margin of safety, perhaps times had changed and that the margin could no longer be obtained.
www.efficientfrontier.com /ef/703/mos.htm   (1173 words)

  
 Margin Of Safety   (Site not responding. Last check: 2007-10-11)
Margin of safety doesn't guarantee a successful investment (nothing does), but it does provide room for error in an analyst's judgment.
Margin of safety is a concept used in many areas of life, not just finance.
If you feel that a stock is worth $10, buying it at $7.50 will give you a margin of safety in case your analysis turns out to be incorrect and the stock is really only worth $9.
www.investopedia.com /terms/m/marginofsafety.asp   (375 words)

  
 NPC Online Library: Information on Levels of Environmental Noise Requisite to Protect Public Health and Welfare with an ...
The incorporation of a margin of safety in the identification of non-hazardous levels is not new.
The concept of a margin of safety implies that every sector of the population which would reasonably be exposed to adverse noise levels should be included by the specifically described levels.
The 5 dB margin of safety is particularly desirable to protect the population against long-term annoyance with a higher probability than would be provided by the levels protecting indoor and outdoor speech communication capability alone.
www.nonoise.org /library/levels74/levels74.htm   (12499 words)

  
 Value Investing Margin of Safety
The difference between price and value, referred to as the safety margin, is the raison d'être of models that estimate intrinsic value of common stocks and other investment assets.
Thus we focus on the important concept of safety margin rather than emphasize price with its potential quick and large changes from one transaction to the next.
A safety margin of at least twenty percent is desirable.
www.numeraire.com /margin.htm   (1617 words)

  
 Fool.com: Qualcomm's Margin of Safety [In My Opinion] November 19, 2001
As for Cisco's margins for the quarter -- a whopping pro-forma margin of 7.55%.
As for margins, Nokia continues to earn admiration for maintaining profitable handset operation when many claim handsets are becoming commodities; its margins in that segment is a respectable 19%.
And while gross margin increased to 37%, the meaningful number to compare to Qualcomm's rate of transforming revenues to the bottom line is the net margin, which is only 2.97%.
www.fool.com /imo/2001/a011119.htm   (1350 words)

  
 Improved Consideration of the Margin of Safety in Total Maximum Daily Load Development   (Site not responding. Last check: 2007-10-11)
The margin of safety (MOS), designed to account for uncertainty in calculations, is a required element of a total maximum daily load (TMDL).
It is widely recognized that the margin of safety component is not currently being rigorously addressed throughout the TMDL program.
Rigorous application of the margin of safety is presently inhibited by: (1) limited practical experience in defining TMDL uncertainty; (2) absence of policy regarding the desired degree of protection to be provided by the MOS; and (3) data-poor/high-uncertainty situations with MOS values so large as to make implementation impractical.
www.pubs.asce.org /WWWdisplay.cgi?0409145   (256 words)

  
 [No title]   (Site not responding. Last check: 2007-10-11)
Compute the contribution margin ratio and use it to compute changes in contribution margin and net income.
The margin of safety is the excess of budgeted (or actual) sales over the break-even volume of sales.
The margin of safety can be computed in terms of dollars: Margin of safety in dollars = Total sales — Break-even sales or in percentage form: Margin of safety percentage =  EMBED Equation.2  Operating Leverage.
www.austin.cc.tx.us /njacobs/Acct2302/LearningObj/LO6_2302.doc   (324 words)

  
 Fool.com: Three Magical Words [Commentary] November 12, 2004
Simply put, the margin of safety recognizes that there is a difference between a company's current market price and the intrinsic value of the company.
I paid what I thought Merck was worth at the time and had no margin of safety to protect myself from any further bad news.
His concept of investing only when a margin of safety exists forms the core principle around which the entire discipline of value investing revolves.
fool.com /news/commentary/2004/commentary04111201.htm?logvisit=y&...   (746 words)

  
 margin. The American Heritage® Dictionary of the English Language: Fourth Edition. 2000.
A limit in a condition or process, beyond or below which something is no longer possible or acceptable: the margin of reality; has crossed the margin of civilized behavior.
An amount allowed beyond what is needed: a small margin of safety.
A measure, quantity, or degree of difference: a margin of 500 votes.
www.bartleby.com /61/64/M0106400.html   (245 words)

  
 CEHN: Coalition Letter on Implementing the 10X Margin of Safety (FQPA)   (Site not responding. Last check: 2007-10-11)
The FQPA requires that an additional 10-fold margin of safety must be used when "establishing, modifying, leaving in effect, or revoking a tolerance or exemption for a pesticide chemical residue".
The law clearly states that this safety margin can be changed "only if, on the basis of reliable data, such margin will be safe for infants and children." In our view, this provision is central to preventing children (including fetuses and infants) from being exposed to unsafe and unnecessary levels of pesticide residues.
To date, EPA has eliminated or lessened the 10-fold safety factor in the majority of the pesticide tolerances reviewed by the agency since FQPA's passage, implying that in making those determinations the EPA had "reliable data" on what would be safe for infants and children.
www.cehn.org /cehn/fqpacoaltr.html   (510 words)

  
 Margin of Safety   (Site not responding. Last check: 2007-10-11)
The difference in volume from the expected level of sales to the break-even point is called the margin of safety (MOS).
If actual sales are 6,000 units, the margin of safety is 1,000 units (6,000 - 5,000).
If actual sales are $120,000, the margin of safety is $20,000 ($120,000 - $100,000).
www.swlearning.com /accounting/louderback/ppt/02/sld021.htm   (51 words)

  
 [No title]
The margin of safety is the difference between actual sales and breakeven sales.
Breakeven is $250,000 ($120,000 (48%); accordingly, the margin of safety is $50,000, or 16.67% ($50,000 ($300,000) e.
The margin of safety ratio is equal to the margin of safety divided by total sales dollars: $236,000 margin of safety ($250,000 = 94.7% margin of safety ratio 4-8 Note:remember that if sales volume changes, variable costs will change proportionately.
faculty.smu.edu /mvanbred/acct2312/ingram/ingram04e.doc   (2673 words)

  
 Safety Shorts for January 97   (Site not responding. Last check: 2007-10-11)
This collection of safety briefings is intended to provide a selection of safety related topics suitable for review at the beginning of each squadron meeting.
This is a typical "margin of safety+ mishap - reduced margin of safety means greater mishap potential.
Mountain wave is an atmospheric phenomenon in which an obstruction (typically a mountain ridge) excites air currents into a standing wave pattern of up and down verticle flow.
www.aero.com /fbo/capsq80/ss0197.htm   (562 words)

  
 Margin of safety -Motocross / Supercross / Dirtbikes - Riding/Training Techniques - Injuries
Margin of safety -Motocross / Supercross / Dirtbikes - Riding/Training Techniques - Injuries
It seems the critical issue was how quickly that margin of safety evaporated, leaving me on the ragged edge (and occasionally over it).
With the right approach, I believe I could ride the same course both faster AND safer, by being able to recognize that margin of safety.
www.dirtrider.net /forums3/showthread.php?t=59997   (1544 words)

  
 Effectiveness and Safety: Overview of Drugs: Merck Manual Home Edition
The difference between the usual effective dose and the dose that produces severe or life-threatening side effects is called the margin of safety.
Designing effective drugs with a wide margin of safety and few side effects cannot always be achieved.
Consequently, some drugs must be used even though they have a very narrow margin of safety.
www.merck.com /mmhe/sec02/ch010/ch010d.html   (534 words)

  
 Technical Diving at Exotic Caye Beach Resort
The diver may elect to dive the "mix" on EANx tables or conservatively using their dive computers on air tables with an added diver safety margin.
The IANTD Nitrox Diver certification is adaptable to being taught as a single program or by combining it with a variety of advanced or specialty diver courses.
It is intended to explain the standards, properties, equipment, oxygen safety, handling and cleaning procedures for mixing or blending diving gases other than air, such as Nitrox (EANx).
www.belizeisfun.com /technicaldiving.htm   (1125 words)

  
 Safety Margin tables   (Site not responding. Last check: 2007-10-11)
The way you figure a safety margin is by taking the weight the cable can support, divided by the actual weight you are supporting.
Using a 3/16 cable we have a safety margin of 21 to 1
The safety margin now decreases for other brands, but the "High Flyer" safety margin increases.
members.aol.com /hhfmfg/htmls/safety.htm   (580 words)

  
 An Old Fashioned Margin of Safety
In his classic work, The Intelligent Investor, Benjamin Graham suggested that passive investors, who do not actively research the best value stocks, may achieve their margin of safety against the likelihood at times of falling equity prices, by keeping a percentage of their liquid assets invested in bonds.
On the other hand, for the individual willing to take a more active role in his or her investments, he recommended a different kind of margin of safety, one based on an analysis of the value of the company whose shares were to be purchased.
I believe that, to the extent one can purchase equity assets that meet such strict criteria, for a margin of safety below their intrinsic value price, it is reasonable to dispense with the portfolio allocation method of protecting one's assets from loss.
home.att.net /~larvaluebug/archinvest7-02.html   (1426 words)

  
 Russia seeks 'safety margin' with US - (United Press International)   (Site not responding. Last check: 2007-10-11)
Moscow, Russia, May. 8 (UPI) -- Russia is seeking to create a "margin of safety" in its relations with the United States, Interfax news agency reported Sunday.
Sunday's meeting between Russian President Vladimir Putin and visiting President George W. Bush is part of a wider Russian political strategy aimed at creating a margin of safety in bilateral relations between the two leading nuclear powers, a Kremlin source told Interfax.
"I am referring to the need to consider ways to accomplish previously set tasks, primarily bearing in mind the creation of such a margin of safety in Russian-American relations that would guarantee their ability to stand the test of time and not bow to the burden of political trends," the source said.
washingtontimes.com /upi-breaking/20050508-102736-5890r.htm   (157 words)

  
 Vne
Generally, an aircraft manufacturer first determines the speed at which the first obstacle to safe flight occurs even if the aircraft is unaccelerated and no abrupt control inputs are applied.
This speed is then reduced to provide a safety margin.
It is not safe to fly at or near Vne in turbulence or when abrupt control inputs are applied.
www.brainyencyclopedia.com /encyclopedia/v/vn/vne.html   (174 words)

  
 MSN Encarta - Dictionary - margin
Search for "margin" in all of MSN Encarta
Draw a margin an inch in from the edge.
additional amount: an amount over and above what is strictly necessary, included for safety reasons or to allow for mistakes or delays
encarta.msn.com /encnet/features/dictionary/DictionaryResults.aspx?refid=1861628395   (359 words)

  
 Family Therapy Networker: CASE STUDIES; A Margin of Safety   (Site not responding. Last check: 2007-10-11)
By the time we began seeing the family together, one of us had been seeing Sari in individual therapy for about a year.
Since she was extremely apprehensive about meeting with her family, especially her father, we decided to videotape family sessions and invite Sari to view the tapes in the privacy and safety of individual therapy.
Sari was enthusiastic about the idea, and we decided to present it to the family at our initial session.
www.findarticles.com /p/articles/mi_qa3704/is_199607/ai_n8738742   (1527 words)

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