Do a security pass Gramham filter if it do not meet rule 6 or rule 7, but it still meet the rule "currentPrice < sqrt(avg(EPS) x BVPS(Tangibles only))" ?
If yes, could you help me explain the reason?
6. Current price should not be more than 15 times average earnings of the past three years.
7. Current price should not be more than 1½ times the book value.
I see in this link:
https://www.serenitystocks.com/article/10-stocks-meeting-benjamin-grahams-defensive-criteria-2013
All companies didn't meet the rule 7: CurrentPrice < 1.5 x BVPS(Tangibles only)
Thanks a lot,
Divi
Submitted by divi. Created on Friday 9th October 2020. Updated on Friday 9th October 2020.
That is correct
Dear Divi,
Thank you for your forum post!
That is correct! This issue is discussed in detail in Using The Graham Number Correctly.