Do your formulas to determine Graham's Intrinsic Value take into account his modified methods he mentioned in a 1976 interview, namely:
1. "Earnings yield ratio at least twice as good as the AAA Treasury bond yield typically for most years…with a maximum P/E multiple of 10 even when interest rates are under 5%, and a maximum multiple of 7 times even when interest rates are above 7%, as they are now."
2. Stocks making lows around 50% of their previous 24-month high.
3. Stocks priced at 2/3 of book value.
That 50-something page interview is available online but the gest of it is mentioned in this 2021 article published on Seeking Alpha's website: https://seekingalpha.com/article/4449136-value-stock-selections-a-simpler-benjamin-graham
Thanks,
Doozyman
Submitted by Doozyman. Created on Tuesday 28th March 2023. Updated on Tuesday 28th March 2023.
Details
Dear Doozyman,
Thank you for your forum post!
The Intelligent Investor too has a section dedicated to such strategies. Security Analysis to The Intelligent Investor - a paradigm shift has more details.
Graham's work and current screening techniques
I'm just trying to find the best screener to use that emphasizes Graham's work on Value Investing. It may be GrahamValue, Stock Rover, my own screener at my broker, or some other screener I have yet to find. It seems odd that you call the 1976 Graham interview an "Alleged Interview" as though casting doubt on its authenticity. It seems doubtful to me that he was referring in the 1976 interview to a change in methods from his 1934 book to his 1949 book. But each has their own opinion. It may be that Graham's later, and simpler method using earnings yield may produce the same or similar results to the more complicated formula that GrahamValue (and perhaps others) use with EPS. I don't know. At any rate, I appreciate your reply and the info on your website.
Unverifiable
Dear Doozyman,
Thank you for your comment!
As explained later in that link, the interviews were referred to as "alleged" since their sources were unverifiable; whereas The Intelligent Investor is verifiable in print.
However, the link has now been updated to say "unverifiable" instead. The link has also been updated with Graham's own comments on various tests of single criteria, which he says were the basis for his final recommendations for stock selection.
Thank you again for your comment!