Graham Formula Stock Screener

RGV min:        RGV max:

Yield on AAA corporate bonds (Y): %

 
2016 backtesting*:  +35.2%

*average 2016 performance of 161 stocks that at the beginning of 2016 had the parameters you selected.

Only on this site!

Use value-price divergence and intrinsic value to find stocks that are expected to outperform the market by a wide margin. There is instant backtesting on 2016 results.

STOCK SCREENER

STOCK SCREENING RESULTS
Stocks Listed in the USA

Ticker Company name Net Inc.
3yr avg.
$ mln
No. of
shares
mln
Avg.
EPS
$/share
Growth
rate
%
Stock
price
$/share
Intrinsic
value
$/share
RGV X-FIN
Intrinsic
value
Potential
%
Rating
ALN American Lorain 8 38 0.21 -140 0.550 1.14 2.1 premium content
ARL American Realty Investors 23 15 1.49 50 7.670 13.5 1.8 premium content
BBBY Bed Bath&Beyond 940 149 6.33 50 38.750 57.52 1.5 premium content
BPY Brookfield Property Partn 960 259 3.71 50 22.350 33.71 1.5 premium content
BZH Beazer Homes USA 128 34 3.81 50 12.410 34.59 2.8 premium content
CBB Cincinnati Bell 177 42 4.24 50 18.850 38.5 2 premium content
CGA China Green Agriculture 27 39 0.7 50 1.260 6.32 5 premium content
CGI Celadon Group 31 29 1.09 50 3.950 9.88 2.5 premium content
CIG Companhia Energetica de M 918 1359 0.68 50 2.730 6.14 2.2 premium content
CODI Compass Diversified Holdi 165 61 2.71 50 16.850 24.64 1.5 premium content
CPSS Consumer Portfolio Servic 31 23 1.32 50 4.870 12.03 2.5 premium content
CREG China Recycling Energy 18 9 2.07 50 1.580 18.81 11.9 premium content
CXDC China XD Plastics 102 50 2.06 50 4.850 18.72 3.9 premium content
HLNE Hamilton Lane Cl A 63 19 3.32 50 18.720 30.16 1.6 premium content
HOV Hovnanian Enterprises Cl 96 147 0.65 50 2.340 5.94 2.5 premium content
HRTG Heritage Insurance Holdin 58 30 1.94 50 12.100 17.67 1.5 premium content
IMH IMPAC Mortgage Holdings 41 16 2.57 50 14.300 23.34 1.6 premium content
KBH KB Home 370 85 4.38 50 20.600 39.79 1.9 premium content
KEP Korea Electric Power ADR 6623 1289 5.14 50 19.810 46.67 2.4 premium content
LEXEA Liberty Expedia Holdings 873 56 15.69 50 48.310 142.6 3 premium content
MMAC MMA Capital Management 27 6 4.53 0 23.300 36.83 1.6 premium content
MTG MGIC Investment 589 345 1.71 50 10.540 15.54 1.5 premium content
NTL Nortel Inversora ADR 130 3 42.6 50 27.400 387.06 14.1 premium content
ONP Orient Paper 10 21 0.47 0 0.950 3.84 4 premium content
RAD Rite Aid 841 1012 0.83 50 4.000 7.55 1.9 premium content
RRTS Roadrunner Transportation 50 40 1.26 50 6.720 11.42 1.7 premium content
SC Santander Consumer USA Ho 772 357 2.16 50 12.740 19.67 1.5 premium content
SHIP Seanergy Maritime Holding 27 31 0.86 50 0.810 7.86 9.7 premium content
SMRT Stein Mart 26 48 0.54 50 2.470 4.94 2 premium content
STV China Digital TV Holding 23 59 0.39 50 1.730 3.53 2 premium content
TNK Teekay Tankers 101 153 0.66 50 2.050 6 2.9 premium content
XIN Xinyuan Real Estate ADR 63 64 0.98 50 4.660 8.91 1.9 premium content
YECO Yulong Eco-Materials 10 12 0.83 50 0.600 7.57 12.6 premium content

The complete list of 33 stocks matching your screening parameters:

ALN, ARL, BBBY, BPY, BZH, CBB, CGA, CGI, CIG, CODI, CPSS, CREG, CXDC, HLNE, HOV, HRTG, IMH, KBH, KEP, LEXEA, MMAC, MTG, NTL, ONP, RAD, RRTS, SC, SHIP, SMRT, STV, TNK, XIN, YECO

You may copy and paste this list into YOUR PORTFOLIO.


About Graham Formula Stock Screener

Contrary to common belief, Benjamin Graham and David Dodd did not provide any indication that they used a formula or a specific algorithm for determining intrinsic value of a common stock. According to them, "security analysis does not seek to determine exactly what is the intrinsic value of a given security". It can only asses if the price is low or high enough. The intrinsic value is a range with vaguely defined limits, not a specific number.

In The Intelligent Investor, Benjamin Graham provides a simple formula, that, in his own words, only "approximates the results of the more elaborate calculations in vogue" (i.e. other methods) for the valuation of growth stocks. He never actually suggested or implied that that the formula gives the "true value" of a growth stock. This formula appeared in the text in the context of the discussion how unreliable predictions of future growth rates are.

The formula was slightly revised in 1974 to adjust for variations in market interest rates and was described as follows:

Graham formula

where V* is intrinsic value of a stock, EPS is the company’s last 12-month earnings per share, 8.5 is the constant representing the appropriate P/E ratio for a no-growth company as proposed by Graham, g is the company’s long-term (five years) earnings growth estimate, 4.4 is the average yield of high-grade corporate bonds in 1962, when this model was first introduced, and Y is the current yield on 20yr AAA corporate bonds.

Despite specific warnings from the author, the equation, known as the Benjamin Graham formula, is commonly used today for valuation of stocks.

Overzealous Graham followers even introduced the notion of relative Graham value (RGV), which is calculated as the ratio of stock's intrinsic value (V*) to its current price (P):

Relative Graham Value

For overvalued stocks RGV is less than one, while for undervalued ones it is greater than one.

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