Graham Formula

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Definition

This formula was created by value investing pioneer Benjamin Graham in order to estimate value growth over time. It is calculated with next year's estimated EPS growth rate and the long-term estimated EPS growth rate.

Graham's calculation returns figures similar to those resulting from complex mathematical calculations.

Formula

Value = Current EPS x (8.5 + 2g) where g is the expected 7-10 year earnings growth rate

Related Terms

Earnings per Share, EPS Growth

Recent Quotes

Symbol Price Chg Chg % Market Cap
XIN 2.68 -0.19 -6.62% 206.17M
XIDE 2.29 -0.03 -1.29% 178.89M
XHE 52.27 -1.10 -2.07%
XG 2.95 +0.15 +5.36% 283.67M
XEL 27.96 -0.06 -0.21% 13.61B
XEC 51.29 -1.98 -3.72% 4.396B
XCO 6.90 -0.30 -4.17% 1.495B
XBKS 4.15 +0.00 +0.00% 43.37M
XBI 78.30 -2.14 -2.66%
XATA 0.81 +0.05 +6.56% 8.651M
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