Ben Graham Formula Screen
Based on Graham’s original intrinsic value from "The Intelligent Investor"
Quick Screen Summary
A screen based on Benjamin Graham’s original intrinsic value formula.
V* = EPS X (8.5+2g) X 4.4 / Y
V is the intrinsic value, EPS is the trailing 12 month EPS, 8.5 is the PE ratio of a stock with 0% growth and g being the growth rate for the next 7-10 years.
Y is 20 yr corporate AAA bond rate.
The original formula produces values at the upper range and so the formula has been modified to err on the side of conservatism.
V* = EPS X (7+1.5g) X 4.4 / Y
Read more: Value stocks with the Graham formula