Analysis
Graham number and margin of safety calculator
See Graham's rule of thumb figure and how far the price is from it.
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Graham number
PKR 318.20
- Margin of safety
- 21.43%
How it is calculated
Graham number = the square root of (22.5 x earnings per share x book value per share).
Margin of safety = (Graham number - price) / Graham number. It is negative when the price is above the Graham number.
The root is worked out exactly and rounded to the paisa once.
Assumptions
- It is one old rule of thumb, written for a particular kind of investor, and not a measure of what a share is worth.
- It needs earnings and book value above 0.
- It does not say whether to own a share. Companies and industries differ.
Results are worked out from the figures you enter and are only estimates. They are not advice.
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