— IV Calculator
Graham Calculator
Benjamin Graham, also known as the father of value investing, was known for picking cheap stocks. The graham calculator is a good tool to find a rough estimate of the intrinsic value. It is simple and very easy to use.
GRAHAM
“AN intelligent investor is a realist who sells to optimists and buys from pessimists.” – BEN GRAHAM
Graham’s FORMULA
V* = Intrinsic value per share
EPS = Earnings per share
g = Growth rate of the company
Y = 10 Yrs government bond rate
Note
You can also use our customizable Graham formula here for performing conservative calculations. Here’s the calculator!!
ABOUT BEN GRAHAM
Benjamin Graham, also known as the father of value investing, was known for picking cheap stocks. He has written two all-time best selling books- “The Intelligent Investor” and “Security Analysis”.
Coincidently, he was also the mentor of the legendary investor (and the third richest person in the world), Warren Buffett -who is supposed to inherit his value investing principles from Benjamin Graham.
The Graham Calculator is a good tool to find a rough estimate of the intrinsic value. It is simple and very easy to use. Although the values are not as pinpoint as the DCF valuation method, however, it is a good tool for shorthand analysis. Moreover, as it is said: “It is better to be approximately right, than precisely wrong”