Name of the Company
Graham's Stock Pick Method
METHOD 1
1. Current Market Price is less than 67% of the Net Cu
2. Net Current Assets = (Current Assets - Total Liabilitie
Current Market Price
Current Assets
One Check Pick
Current Liabilities
Fixed Liabilities
Total No. of Shares
Check Value
METHOD 2
1. Size of the Company Sales at least more than 200 Crores
Latest Annual Sales
1. Current Assets must be at least twice the Current Li
2. Long term or Fixed liabilities must be less than Net C
2. Strong Financial Stability Current Liabilities)
Current Assets
Current Liabilities
Fixed Liabilities
Should have positive earnings for past 10 years at leas
3. Earnings Stability
be we can reduce this to 5 years for Indian Market
Should have paid dividend for last 10 years uninterrup
4. Dividend Record
May be we can reduce this to 5 years for Indian Mark
Average earnings should have increased by at least 30
on safe side.
Current Earnings (Recent 3 Yrs
5. Earnings Growth Average)
Earnings before 10 years
( Last 3 Yrs Average)
Check Value
6.Moderate Price/Earnings Ratio PE Ratio should be at least less than 14 (which means
7% return)
7. Moderate ratio of Price to Assets PB Ratio should be less than 1.5 or may be 2
the Company
Values Check
ETHOD 1
ce is less than 67% of the Net Current Assets.
= (Current Assets - Total Liabilities)/No. of Outstanding Shares
To be filled
To be filled
To be filled
#DIV/0!
To be filled
To be filled
#DIV/0!
ETHOD 2
an 200 Crores
NO To be filled
t be at least twice the Current Liability.
liabilities must be less than Net Current Assets (Current Assets-
0
1. YES
0
0 2. NO
earnings for past 10 years at least. May
YES/NO
to 5 years for Indian Market
dend for last 10 years uninterrupted.
YES/NO
e this to 5 years for Indian Market
uld have increased by at least 30%. We can increase it to 100% to be
- To be filled
#DIV/0!
- To be filled
#DIV/0!
least less than 14 (which means at least YES/NO
ss than 1.5 or may be 2 YES/NO
Earnings Calculation Rs. (In Crores)
Income from Operations -
(-) Expenses To be filled
Income before tax -
(-) Tax -
Income after tax -
(+) Depreciation & Amortization To be filled
(+) Profit from associates & Joint
Venture To be filled
(-) Maintenance Capital
Expenditure To be filled
Distributable Cash Flow -
Excess Cash Calculation Rs. (In Crores)
(+) Fixed Financial Assets Investment To be filled
Other Financial Assets To be filled
(+) Current Financial Assets Investment To be filled
Cash & Cash Equivalence To be filled
Bank Balance To be filled
Other Financial Assets To be filled
(-) Total Debt Fixed Liabilities -
Current Liabilities -
Total -
Required Rate of Return @ Capital Needed ( +)Excess Cash Per Share
Value
7.50% - - #DIV/0!
8.00% - - #DIV/0!
10.00% - - #DIV/0!
12.00% - - #DIV/0!
15.00% - - #DIV/0!
Margin of
Safety
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
1.08 0.9259259259 Name of the Company NOTE:
Formula= Amount/(1+rate of interest) Buffet's Stock Valuation
Current Market Price 0
4 Year Average Profit #DIV/0! To be filled
4 Year Average Capital Expense #DIV/0! To be filled
Free Cash Flow every year #DIV/0!
Earnings in first 3 years -
Earnings in recent 3 years -
Earnings growth in 10 years #DIV/0!
Profit growth in 10 years #DIV/0!
It is assumed the requi
Value after 10 years #DIV/0! more PE ratio after 10 Y
Current Value
Year
of Money
1 #DIV/0!
2 #DIV/0!
3 #DIV/0!
4 #DIV/0!
5 #DIV/0!
6 #DIV/0!
7 #DIV/0!
8 #DIV/0!
9 #DIV/0!
10 #DIV/0!
10 #DIV/0!
Intrinsic Value #DIV/0!
Price Discount (%) #DIV/0!
Do not adjust cell A & B if u did not understand the formula
To be filled
To be filled
It is assumed the required PE ratio is 14. It can be adjusted if you expect
more PE ratio after 10 Years
