Graham's Formula for Valuing Growth Stocks
Trading and Market Microstructure
2020-03-23 v1 General Finance
Risk Management
Abstract
Benjamin Graham introduced a very simple formula for valuing a growth stock in 1962. How does it work and why? What is a sensible way to calculate this across many stocks and provide a scoring system to compare stocks amongst each other? We are presenting a methodology here which is put into practice.
Cite
@article{arxiv.2003.09300,
title = {Graham's Formula for Valuing Growth Stocks},
author = {Andreas A. Aigner and Walter Schrabmair},
journal= {arXiv preprint arXiv:2003.09300},
year = {2020}
}
Comments
9 pages, 5 figures