Benjamin Graham's Calculator
This graham calculator is used to finds the intrinsic value of a company.
Formula to Calculate Graham Intrinsic Value
Benjamin Graham is the founder of the stock investing strategy of value investing. This strategy is based on a calculation of the intrinsic value of the business. The Benjamin Graham Formula for finding the intrinsic value of a stock was:
V* - Intrinsic value per share or the value expected from the growth formulas over the next 7 to 10 years.
EPS - the companys last 12-month(four quarters) earnings per share.
8.5 - P/E base for a no-growth company.
g - reasonably expected 7 to 10 year growth rate.
4.4 - the average yield of AAA corporate bonds in 1962.
Y - the current yield on AAA corporate bonds.