Thursday, August 31, 2017

VolkerWessels simple intrinsic value calculation

Decades ago Benjamin Graham wrote: The Intelligent Investor. Warren Buffett read the book and the rest is history.

It never fails to surprise when the market "follows" Graham's simple rule for the Defensive Investor: Don't pay more than 15x Earnings and/or 1,5x Book Value.

The Graham Number value is the geometric average of the two:

Square Root ( 15 x 1,9 Euros Earnings per Share x 1,5 x 13,5 Euros Book Value per Share ) =

24,1 Euros Graham Value

"Mr. Market" Price per share today: 25,6 Euros.

For in depth analysis of other companies, see:

Comments, questions or E-mails welcome:

No comments: