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Revised Benjamin Graham Formula

The Benjamin Graham formula is an intrinsic value formula used to quickly determine how rationally priced stocks were.

The intrinsic value increases directly with increasing earnings per share and the long-term earnings growth estimate. It declines with increasing current yield on AAA corporate bonds.

Formula

QuantityVariable[SuperStar["V"], "Money"] == (0.044*QuantityVariable["EPS", "Money"]*(8.5 + 200*QuantityVariable["g", "Unitless"]))/QuantityVariable["Y", "Unitless"]

symbol description physical quantity
V* intrinsic value "Money"
EPS earnings per share "Money"
g long-term earnings growth estimate "Unitless"
Y current yield AAA corporate bonds "Unitless"

Forms

Examples

Get the resource:

In[1]:=
ResourceObject["Revised Benjamin Graham Formula"]
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Get the formula:

In[2]:=
FormulaData[ResourceObject["Revised Benjamin Graham Formula"]]
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Use some values:

In[3]:=
FormulaData[ ResourceObject[ "Revised Benjamin Graham Formula"], {QuantityVariable[ "EPS","Money"] -> Quantity[8., "USDollars"]}]
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