margin of safety

• safety margin

margin of safety (plural margins of safety)

1. (finance) The difference between the intrinsic value of a stock and its market price.
2. (accounting) The strength of a business measured by the amount of income earned above the break-even point.
3. (medicine) The difference between a therapeutic dose of a medication and a toxic dose.
4. (engineering) The ratio of the strength of a structure to the requirements placed on that structure.

• value investing

• “margin of safety”, in Cambridge English Dictionary, Cambridge, Cambridgeshire: Cambridge University Press, 1999–present.