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