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Benjamin Graham’s stock screen



1. PE of the stock has to be less than the inverse of the yield on AAA Corporate Bonds.

2. PE of the stock has to less than 40% of the average PE over the last 5 years.

3. Dividend Yield > Two-thirds of the AAA Corporate Bond Yield.

4. Price < Two-thirds of Book Value.

5. Price < Two-thirds of Net Current Assets.

6. Debt-Equity Ratio (Book Value) has to be less than one.

7. Current Assets > Twice Current Liabilities.

8. Debt < Twice Net Current Assets.

9. Historical Growth in EPS (over last 10 years) > 7%.

10. No more than two years of negative earnings over the previous ten years.

 

 

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