Benjamin graham formula investopedia


Benjamin Graham. An analyst who is considered the father of value investing. This is an investment strategy in which one seeks securities thought to be undervalued. His seminal works, Security Analysis and The Intelligent Investor, are both considered classics and are still studied. In compliance to GDPR, we'd like to inform you that we use cookies to ensure that we give you the best experience on our website. The use of this site implies that you consent. Graham's Number View Financial Glossary Index Definition. The Graham number, or Benjamin Graham number, is a figure used in securities investing that measures a stock's so-called fair value. Named after Benjamin Graham, the founder of value investing. Formula. Graham's Number = Sq. Root ( 22.5 x EPS x Book Value per Share ) I will be adding Investopedia.com to the links on my sidebar^^. Posted in Financial Theory , Investing , Personal Finance and tagged benjamin graham , Berkshire hathaway , finance , investing , investment mentality , investopedia , postaweek2012 , quotes , stock-picking , stocks , value investing , Warren BuffetApr 26, 2015 · On the other hand, the Benjamin Graham formula is only useful for studying past misjudgments of growth expectations by the market. It cannot be used to calculate present intrinsic values, or to ...