Hi GrahamValue team,
Please can you explain the formula behind the "Filter Calculator". After going through the page mentioned below, I fee we need to have two separate Filter Calculators for Defensive and Enterprising grades. For example, if the Corporate Bond Yield is 3.3%, then acceptable PE ratio is 30, so Graham no for a Defensive stock needs to be multiplied by square root of 2 (or stock with a Graham Number(%) of 70% will be acceptable). If we use the same Bond Yield and consider Enterprising stock, we need to multiply Serenity no by square root of 3 (or stock with a Serenity Number (%) of 58% will be acceptable). However, when I enter Bond Yield as 3.3% in the Filter Calculator it gives filter value as 70%. So if I use 70% to filter Enterprising stocks in the main page, is it not wrong. Please clarify.
https://www.grahamvalue.com/blog/adjusting-benjamin-grahams-price-calcul...
Thanks.
Submitted by perera. Created on Thursday 11th December 2025. Updated on Thursday 11th December 2025.
Identical Adjustment for Both
Dear Perera,
Defensive and Enterprising grade stocks were required to have P/E ratios of 15 and 10 respectively, when AA Bond Yields were 7.5%.
Therefore, Defensive and Enterprising grade stocks will need to have P/E ratios of 30 and 20 when AA Bond Yields are 3.3%.
Multiplying the Serenity Number with √3 would make both P/E ratios identical, 30.
Hope that explains why the adjustment for both calculations need to be identical.
Thank you for your forum post!
Identical Adjustment for Both
Thank you for your swift response. Today's AA Bond Yields is 4.56% and Filter Calculator in GrahamValue says Filter Value (%) is 83. So please advise, if I want to identify Defensive or Enterprising stocks which meet all Graham's criteria today, I should select respective Graham grade from the main screen and input 83 in the box provided under the Graham Number(%) ≥ or the Intrinsic Value(%) ≥ accordingly. Which means we can use single filter value taken from GrahamValue Filter Calculator (in this case 83) for both Defensive and Enterprising graded stocks. Thanks again.
Correct
Dear perera,
You're correct!
However, the Graham Number(%) ≥ and Intrinsic Value(%) ≥ filters move in steps of 5%. So you may have to use either 80% or 85% as per your preference.
Also note that for Defensive grade stocks, the Graham Number(%) ≥ and Intrinsic Value(%) ≥ filters will give identical results.
Please see the Video Tutorials in the Quick Reference for more detailed explanations.
Thank you for your comment!