margin of safety

noun

The difference between the intrinsic value of a stock and its market price.

Similar
safety marginmargin of error
Ask AI about this wordChatGPTClaudePerplexityGoogle AIGrok

Meanings

nounmargin of safety (plural margins of safety)

plural margins of safety · alternative safety margin

  1. businessThe difference between the intrinsic value of a stock and its market price.
  2. accountingThe strength of a business measured by the amount of income earned above the break-even point.
  3. medicineThe difference between a therapeutic dose of a medication and a toxic dose.
  4. engineeringThe ratio of the strength of a structure to the requirements placed on that structure.

Synonyms & antonyms

nounthe margin required in order to insure safety

Similar
safety marginmargin of error
Broader
marginindex
Also see
margin of error

Synonym sets from Open English WordNet, CC BY 4.0.

Cite this entry
APA

margin of safety. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/margin%20of%20safety

MLA

“margin of safety.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/margin%20of%20safety. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “margin of safety,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/margin%20of%20safety.

Source: margin of safety on Wiktionary, CC BY-SA 4.0.