Currency:
Ben Graham
Benjamin Graham
Benjamin Graham
Price per share
Possible Upside
Intrinsic Value
Normalized EPS
Three methods to estimate a normalized earnings per share
ROE Method
Avg ROE
Equity
Norm Net Income
Shares
Norm EPS
ROIC Method
Avg ROIC
Invested Capital
Norm Net Income
Shares
Norm EPS
Net Margin Method
Avg Net Margin
Revenue
Norm Net Income
Shares
Norm EPS
Valuation Inputs
Adjust assumptions to refine the Ben Graham intrinsic value
EPS for Intrinsic Value
Normalized: ·
Reported:
EPS Growth Rate
Expected annual EPS growth over next 7–10 years
AAA Corporate Bond Yield
Current yield on AAA-rated corporate bonds
Graham Number
√(22.5 × EPS × Book Value Per Share)
EPS used
Book Value / Share
Graham Number