  # Benjamin Graham's Calculator

This graham calculator is used to finds the intrinsic value of a company.

# Results...

V* = EPS × (8.5 + 2g) × 4.4Y

V* = 150 × (8.5 + 2 × 12) × 4.44.22

V* = 150 × 32.5 × 4.44.22

V* = 214504.22

Intrinsic Value per share (V*) = 5082.94 ## 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* = EPS × (8.5 + 2g) × 4.4Y

Where,

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. ### Recommended Pages ►

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