The Graham number (or Benjamin Graham's number) measures a stock's fundamental value by taking into account the company's Earnings per share (EPS) and Book Value per share (BVPS).
The Graham number is the upper bound of the price range that a defensive investor should pay for the stock.
According to the theory, any stock price below the Graham number is considered undervalued and thus worth investing in.
To demonstrate this, I picked two stocks. KCB and BAT. Results below indicate that KCB is worth a buy while BAT stock is overvalued hence a no buy.
PS: Investing in stocks is risky. Na hakuna sure bet.
The Graham number is the upper bound of the price range that a defensive investor should pay for the stock.
According to the theory, any stock price below the Graham number is considered undervalued and thus worth investing in.
To demonstrate this, I picked two stocks. KCB and BAT. Results below indicate that KCB is worth a buy while BAT stock is overvalued hence a no buy.
PS: Investing in stocks is risky. Na hakuna sure bet.