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Graham Formula Calculator

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What is the Graham Formula?

The Graham Formula was a simplified version of common financial formulas in the 1970s. It was proposed by Benjamin Graham as a way for value investors to identify the underlying value of a company’s stock.

Formula

Graham Formula (Simple) = Earnings per Share x (8.5 + (2 x reasonably expected 7-10 year growth rate))

Graham Formula (Revised) = (Earnings per Share x (8.5 + (2 x reasonably expected 7-10 year growth rate)) x 4.4) / Current Yield on AAA Bonds