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:
All companies didn't meet the rule 7: CurrentPrice < 1.5 x BVPS(Tangibles only)
Thanks a lot,