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The value is very interesting, but it would be great if it was compared to the academic CAPM model, since it is very similar. 72.68.28.50 03:07, 30 May 2007 (UTC)
≈ —Preceding unsigned comment added by 203.200.59.150 ( talk) 21:45, 22 October 2007 (UTC)
The first sentence says it was not meant to be used to value stocks. The second says it was mentioned as a way to value stocks. Which is it? CurlyPop88 ( talk) 06:28, 6 March 2012 (UTC)
- This is because of the issue mentioned below, User:CurlyPop88. The cautionary note with reference used to be there earlier, but the reference has been removed recently. CaptMalR ( talk) 05:56, 10 August 2014 (UTC)
Intrinsic Value = Earnings x (8.5 + 2 x growth)
Graham actually warned against this formula and only used it to show why such oversimplified growth formulas are unreliable. This formula is popular only due to a printing omission in recent editions of The Intelligent Investor.
Analysts Continue To Use Wrong Benjamin Graham Formula discusses the issue in detail.
I highly recommend adding a cautionary note with reference to avoid misleading readers.
(Note: I'm here to advocate for serenitystocks.com and the correct application of Benjamin Graham's methods. Please see my user page for details)
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| This article is rated Stub-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | ||||||||||
| |||||||||||
The value is very interesting, but it would be great if it was compared to the academic CAPM model, since it is very similar. 72.68.28.50 03:07, 30 May 2007 (UTC)
≈ —Preceding unsigned comment added by 203.200.59.150 ( talk) 21:45, 22 October 2007 (UTC)
The first sentence says it was not meant to be used to value stocks. The second says it was mentioned as a way to value stocks. Which is it? CurlyPop88 ( talk) 06:28, 6 March 2012 (UTC)
- This is because of the issue mentioned below, User:CurlyPop88. The cautionary note with reference used to be there earlier, but the reference has been removed recently. CaptMalR ( talk) 05:56, 10 August 2014 (UTC)
Intrinsic Value = Earnings x (8.5 + 2 x growth)
Graham actually warned against this formula and only used it to show why such oversimplified growth formulas are unreliable. This formula is popular only due to a printing omission in recent editions of The Intelligent Investor.
Analysts Continue To Use Wrong Benjamin Graham Formula discusses the issue in detail.
I highly recommend adding a cautionary note with reference to avoid misleading readers.
(Note: I'm here to advocate for serenitystocks.com and the correct application of Benjamin Graham's methods. Please see my user page for details)