Hello Serenity,
Looking at the CRR SEC filings, it says in their latest annual report income statement that the EPS is 2.41 (http://www.sec.gov/cgi-bin/viewer?action=view&cik=1009672&accession_numb...)
At the current price of 44.65 wouldn't that make their P/E ratio around (44.65 / 2.41) = 18.50? Why would this constitute as a defensive stock if it is above the 15 P/E ratio rule? If I missed something, sorry in advance.
Thanks!
Submitted by Gambit. Created on Wednesday 24th June 2015. Updated on Friday 21st September 2018.
The Graham Number
Dear Gambit,
Thank you for your forum post!
Graham recommended the following for Defensive investors:
Graham's recommended price for Defensive quality stocks is calculated by combining #6 and #7, and is popularly known as the Graham Number.
For more details, please see the Quick Reference section on Intrinsic Value calculations.