Do you know why there’s no previous close listed for CALM? There was one prior to the update today.
https://www.grahamvalue.com/stock/calm#bootstrap-panel--2
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Submitted by twheelkr. Created on Thursday 14th August 2025. Updated on Thursday 14th August 2025.
Weekly Updates
Dear twheelkr,
All financial data on GrahamValue is updated cyclically once a week.
A glitch in this week's data transfer may have caused the error in the Previous Close value for Cal-Maine Foods Inc (CALM). Please check next week by when it should get automatically fixed; since it was displaying correctly earlier.
Also note that stocks that have had their Previous Close values set to Zero will not display an Intrinsic Value(%). This is done to ensure that GrahamValue errs on the side of caution, and no stocks are shown as wrongly clearing Graham's criteria.
Thank you for your forum post!
I have a question regarding
I have a question regarding the valuation of cyclical companies.
As is well known, valuing this type of business based on a single year of earnings can be misleading due to sharp fluctuations across economic cycles. Benjamin Graham addressed this issue directly in The Intelligent Investor and recommended specific solutions.
In my case:
• The current market price of the stock is 124.21
• Using EPS from two years ago (5.69), the implied value of the stock is approximately 59.31, which represents a significant gap compared to the current price.
Graham suggests using multi-year average earnings (7 to 10 years) to smooth out cyclical effects. When applying this approach, the results are as follows:
• 7-year average EPS: 7.20 → implied value ≈ 66
• 10-year average EPS: 5.71 → implied value ≈ 59
My question is:
Which earnings average do you believe is more appropriate for valuing cyclical companies in this context?
Do you think a 7-year average is sufficient, or does a 10-year average provide a more accurate and conservative estimate of intrinsic value in this case?
Three-Year Averages
Dear Omar_H,
Graham recommended three-year averages for both Intrinsic Value calculations and Earnings Growth calculations (over ten-year periods), where applicable.
Thank you for your comment!
Three-Year Averages
1. Using Average Earnings Instead of a Single Year
Graham believed that earnings from a single year could be misleading due to exceptional circumstances or temporary spikes. Therefore, he preferred relying on the following averages:
• 3-year average: Used to evaluate the stock’s current price.
• 7- to 10-year average: Used to assess the company’s stability and its ability to generate sustainable earnings over the long term.
His core principle was clear: earnings from a single year should never be relied upon in isolation.
2. Treatment of Non-Recurring (Special) Items
Graham was highly cautious regarding what is now referred to as creative accounting. Accordingly, he applied the following adjustments:
• Excluding non-recurring gains, such as profits from asset sales or insurance recoveries, because they do not reflect the
Based on this approach, some specialized platforms such as Seeking Alpha present metrics like Normalized Diluted EPS, with explanations similar to those found on Investopedia. These metrics largely align with Graham’s philosophy of earnings normalization.
Applying this methodology to Cal-Maine Foods, Inc. (CALM), the 3-year average Normalized Diluted EPS was calculated at 12.83.
Accordingly, the intrinsic value was estimated at 89.07.
After applying an intrinsic value adjustment factor of 1.205, the adjusted value becomes 107.33.
Am I on the right track?
In Principle
Dear Omar_H,
That sounds about right, in principle. GrahamValue cannot vouch for the exact figures.
Thank you for your comment!