Graham Calculator

GRAHAM

CALCULATOR..

Benjamin Graham, also known as the father of value investing, was known for picking cheap stocks. The graham calculator is a good tool to find a rough estimate of the intrinsic value. It is simple and very easy to use.

GRAHAM'S FORMULA

V* = Intrinsic value per share
EPS = Earnings per share
g = Growth rate of the company
Y = 10 Yrs government bond rate

V* = EPS * (8.5 + 2g) * 4.4 / Y

SIMPLE GRAHAM CALCULATOR

Find the intrinsic value of a company

Currently, the AAA corporate bonds in the United States are yielding close to 4.22% per annum. Please use this data carefully as it is subjected to change in future.

The field below will show the intrinsic value of the stock based on graham's number

If the above value is positive, then the stock is OVERVALUED compared to the current market price of the stock. Else, if it is negative, then the stock is UNDERVALUED at the current price.
Benjamin Graham

ABOUT BEN GRAHAM

BENJAMIN GRAHAM, ALSO KNOWN AS THE FATHER OF VALUE INVESTING, WAS KNOWN FOR PICKING CHEAP STOCKS. HE HAS WRITTEN TWO ALL-TIME BEST SELLING BOOKS- "THE INTELLIGENT INVESTOR" AND "SECURITY ANALYSIS".

Coincidently, he was also the mentor of the legendary investor (and the third richest person in the world), Warren Buffett -who is supposed to inherit his value investing principles from Benjamin Graham.

The Graham Calculator is a good tool to find a rough estimate of the intrinsic value. It is simple and very easy to use. Although the values are not as pinpoint as the DCF valuation method, however, it is a good tool for shorthand analysis. Moreover, as it is said: "It is better to be approximately right, than precisely wrong"

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