Building a Simplified Graham Value Stock Screener |
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Through the Graham series we said we would only consider companies that:
Putting that all together 1, 3,4,5,8 are a piece of cake. 2. Google doesn’t provide a book value option, but if we recall Book Value is (Total Assets – Intangible Assets (Goodwill) – Total Liabilities) So if a company has a Current Ratio of 2 that means they have 2 times as many assets as they have liabilities so therefore they have a book value greater than 0. Also having a P/E ratio over 0 indicates there are some earnings. 6. Google doesn’t have a revenue option, you could go with Market Cap but that does not really express what we are after here. 7. Google doesn’t have dividend history so more research would be necessary based on the candidates. So that leaves us with this: As you will see it chops the list of viable candidates down a fair bit though. Remember showing up on the scanner does not indicate you should buy, it means you should look at it Happy hunting! To Read More about Graham’s Criteria for Investing See our series
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- Buy a Company with a Future (Book Value) (Session 3)
- Buy on the Cheap (Price/Book Ratio) (Session 4)
- Buy on the Cheap (Price/Earnings) (Session2)
- Buy a Company with a Future (Current Ratio) (Session 5)
- CenturyTel Stock Review
6 responses to “Building a Simplified Graham Value Stock Screener”
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Ethan Bloch December 14th, 2008 at 05:30 “Remember showing up on the scanner does not indicate you should buy, it means you should look at it This is great by the way. Thanks for sharing. Cheers. Ethan |
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Anonymous December 14th, 2008 at 21:39 I think you have the criteria for P/B and Current Ratio backwards. Shouldn’t it be “less than or equal to” for P/B, and “greater than or equal to” for Current Ratio? |
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value investor December 14th, 2008 at 21:57 Thanks for the catch, I had it correct in the link but missed it in the text. Corrected now! |
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Eric J. Fox January 10th, 2009 at 12:18 No companies found when i ran the screen |
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value investor January 10th, 2009 at 16:30 Hi Eric, thanks for the note. The google screener is based off of moving market numbers some days no companies show up at all, other days there are a bunch of companies to choose from. Keep checking back in! Thanks for reading. |
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Value Investing Four Filters | BuyingValue.com April 12th, 2009 at 03:49 [...] Filter 2 Graham Fundamentals: Once a company has cleared filter 1 we apply filter 2. Filter two’s role is to get past the optimism insiders have shown in filter one and ask if the company has a healthy future and is priced inexpensively. To anyone familiar with Benjamin Graham the rules used in this filter are old hat, for a sample have a look at my previous posts. [...] |
