KPN stock Price and Graham Defensive Value

SECTOR: [PASS]  KPN is neither a technology nor a financial Company, and therefore this methodology is applicable. 

SALES: [PASS]  The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. KPN's sales of €6 123 million, based on 2021 sales, pass this test.

CURRENT RATIO: [FAIL]  Current assets  €1 868 divided by short-term debt €2 2221 = 0.8 which is under Graham's limit of 2. 

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL] Long term debt is €7 286 and Net Current Assets are minus €353.

LONG-TERM EPS GROWTH: [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. EPS for KPN have decreased since 2003 and therefore the company fails this criterion. 

Earnings Yield: [PASS] Graham likes to see 7% or higher. 9% based on 2021 earnings passes this test. 

Graham Number value: [FAIL]  The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. KPN has a Graham number of √(15 x €0,22 EPS x €0,64 Book Value) = €1,8

Dividend: € 0,14/€3,3 = 4%