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
AFSI AmTrust Financial Service 426 176 2.43 50 13.790 22.04 1.6 197.48 +1,332% str.buy
ALN American Lorain 8 38 0.21 -140 0.430 1.14 2.7 1.25 +190% str.buy
AXL American Axle&Manufacturi 207 75 2.75 50 14.430 24.96 1.7 144.19 +899% str.buy
BBBY Bed Bath&Beyond 828 145 5.71 50 27.760 51.93 1.9 107.29 +286% str.buy
BZH Beazer Homes USA 128 33 3.88 50 16.310 35.21 2.2 11.07 -32% sell
CAAS China Automotive Systems 28 31 0.89 50 5.190 8.13 1.6 3.94 -24% sell
CBB Cincinnati Bell 177 40 4.41 50 21.250 40.06 1.9 0.94 -96% str.sell
CGA China Green Agriculture 27 38 0.72 50 1.230 6.51 5.3 8.24 +570% str.buy
CGI Celadon Group 31 27 1.16 50 4.450 10.57 2.4 11.63 +161% str.buy
CODI Compass Diversified Holdi 165 60 2.74 50 17.200 24.94 1.5 13.05 -24% sell
CPSS Consumer Portfolio Servic 31 23 1.32 50 3.950 12 3 15.81 +300% str.buy
CXDC China XD Plastics 102 50 2.06 50 4.600 18.7 4.1 18.99 +313% str.buy
DRAD Digirad 13 19 0.68 50 3.800 6.17 1.6 1.10 -71% str.sell
DS Drive Shack 44 65 0.68 -50 2.520 4.85 1.9 0.84 -67% str.sell
DST DST Systems 459 32 14.38 50 51.700 130.71 2.5 133.99 +159% str.buy
HIBB Hibbett Sports 69 21 3.23 50 11.800 29.37 2.5 46.98 +298% str.buy
HOV Hovnanian Enterprises Cl 96 144 0.67 50 2.170 6.05 2.8 0.80 -63% str.sell
IMH IMPAC Mortgage Holdings 41 16 2.61 50 13.910 23.7 1.7 30.30 +118% str.buy
JASO JA Solar Holdings ADR 83 47 1.78 50 6.280 16.2 2.6 19.46 +210% str.buy
JKS JinkoSolar Holding ADR 153 30 5.15 50 27.450 46.8 1.7 24.84 -10% hold
KBH KB Home 370 85 4.36 50 23.590 39.58 1.7 65.01 +176% str.buy
KEP Korea Electric Power ADR 6623 1283 5.16 50 19.320 46.91 2.4 32.50 +68% str.buy
KGJI Kingold Jewelry 54 64 0.84 50 1.550 7.62 4.9 13.12 +746% str.buy
LEXEA Liberty Expedia Holdings 873 56 15.5 50 53.640 140.87 2.6 1,320.95 +2,363% str.buy
LFVN Lifevantage 8 13 0.62 50 3.070 5.67 1.8 12.60 +310% str.buy
MMAC MMA Capital Management 27 6 4.53 0 24.450 36.82 1.5 10.32 -58% str.sell
NHTC Natural Health Trends 41 11 3.68 50 20.130 33.47 1.7 75.00 +273% str.buy
NNI Nelnet Cl A 278 37 7.48 50 46.120 67.94 1.5 12.88 -72% str.sell
NTL Nortel Inversora ADR 130 3 42.54 50 34.020 386.55 11.4 7,974.22 +23,340% str.buy
ONP Orient Paper 10 21 0.47 0 0.880 3.83 4.4 4.79 +445% str.buy
RAD Rite Aid 759 1052 0.72 50 2.280 6.55 2.9 3.50 +54% str.buy
RRTS Roadrunner Transportation 50 38 1.31 50 6.670 11.88 1.8 32.60 +389% str.buy
RTK Rentech 7 20 0.36 -320 0.260 0.72 2.8 1.51 +482% str.buy
SC Santander Consumer USA Ho 772 354 2.18 50 13.090 19.83 1.5 15.16 +16% hold
SHIP Seanergy Maritime Holding 15 33 0.46 50 0.840 4.16 5 1.93 +129% str.buy
SPWH Sportsman's Warehouse 24 40 0.6 50 3.580 5.47 1.5 7.13 +99% str.buy
TGNA TEGNA 653 214 3.05 50 13.060 27.71 2.1 35.27 +170% str.buy
TNK Teekay Tankers 101 153 0.66 50 1.480 6.01 4.1 3.84 +159% str.buy
TOWR Tower International 85 20 4.31 50 23.000 39.14 1.7 44.62 +94% str.buy
VSI Vitamin Shoppe 46 23 2.01 50 6.050 18.25 3 39.64 +555% str.buy
XIN Xinyuan Real Estate ADR 63 66 0.96 50 5.040 8.74 1.7 32.17 +538% str.buy
YECO Yulong Eco-Materials 10 12 0.84 50 0.580 7.6 13.1 11.95 +1,960% str.buy

The complete list of 42 stocks matching your screening parameters:

AFSI, ALN, AXL, BBBY, BZH, CAAS, CBB, CGA, CGI, CODI, CPSS, CXDC, DRAD, DS, DST, HIBB, HOV, IMH, JASO, JKS, KBH, KEP, KGJI, LEXEA, LFVN, MMAC, NHTC, NNI, NTL, ONP, RAD, RRTS, RTK, SC, SHIP, SPWH, TGNA, TNK, TOWR, VSI, 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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