Skip to main content
Simple Ben Graham Calculator

Learn about how to use the Ben Graham valuation method

S
Written by Support
Updated over a week ago

Navigate to the "Extra Tools" Page

On the left-hand navigation bar, click "Extra Tools". The page will load to a new site with 3 options: Dividend Snowball Calculator, Valuation Calculator, and Dividend News.

Next, click on "Valuation Calculator"

This will lead you to the Simple Ben Graham Calculator

Enter the Current Share Price, Earnings Per Share (EPS), expected future growth rate, and discount rate. Click the "Calculate" button. The output will show below. This includes the Intrinsic Value and the percentage Undervalued/Overvalued. That percentage is based on the difference between the current price and calculated intrinsic value.
​

Formula Explained

V = Intrinsic Value Per Share (Over Next 7-10 Years)

EPS = Current Normal Earnings Per Share

8.5 = P/E base for a No-Growth Company

g = Reasonable Annual 7-10 Year Growth Rate of EPS

4.4 = Average Yield of AAA Corporate Bonds in 1962 (Still Applicable)

Y = Current Yield on AAA Corporate Bonds

WARNING:

Make sure to invest with a strong margin of safety. Inputs need to be realistic and may prove to be inaccurate (Garbage In/Garbage Out).

Video Explanation

Did this answer your question?