Application of Graham number

Hello
I am a research scholar pursuing on topic pre and post merger financial analysis of company x .
I want to know whether I can apply Graham number in pre and post merger period of company x and then compare the two periods on Graham basis. Like if max. Post period are undervalued after merger then on Graham basis can it be considered good
Please do guide. How can I apply

Thank you for your forum post!

Graham includes such operations under Special Situations, and writes:

“There is also a fairly wide group of “special situations,”... The most typical case is a projected merger or acquisition which offers a substantially higher value for certain shares than their price on the date of the announcement.”
Benjamin Graham, Chapter 1: Investment versus Speculation, The Intelligent Investor

But Special Situations requires years of experience with Graham's more basic strategies. Graham himself wrote:

"The exploitation of special situations is a technical branch of investment which requires a somewhat unusual mentality and equipment."
Chapter 7: Portfolio Policy for the Enterprising Investor: The Positive Side, The Intelligent Investor

Some of the points to keep in mind for such an analysis are:

1. The Graham Number is not meant to be used in isolation, but with five other supporting criteria for Defensive stock selection.

2. Graham Numbers are to be calculated using the average earnings of the past three years.

An analysis that considers the above factors may yield a useful result. For a detailed description of the Graham framework (with a video tutorial), please see the Quick Reference.

Thank you!

Graham Resources