7 Oversold Stocks Undervalued By The Graham Number
By Kapitall:Interested in finding stocks that may be trading below their fair value? For ideas, we ran a stock screen you may be interested in. We began by screening for stocks that are technically oversold, with RSI(14) below 40. We then screened these stocks for those that are trading at significant discounts to their Graham Number. The Graham Number was created by the "godfather of value investing" Benjamin Graham as a calculation for maximum fair value. It is based off of a stock's EPS and book value per share (BVPS). Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS) The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below.Complete Story »
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