Im certain im missing something...
For Pfizer, it's written:
" [ ... ] A percentage rating by each of Graham's defensive investment criteria. Defensive Graham investment requires that all ratings be 100% or more."
However, we later see [ ... ]:
Graham Number ÷ Previous Close: 69.02%
Of course, 69% is below 100%, and 137% is required for Enterprising. So im just curious what aspect i have misunderstood that has allowed Pfizer a "Defensive" rating?
Thank you so much for you time. :)
Submitted by Justin Barracosa. Created on Saturday 11th July 2015. Updated on Friday 21st September 2018.
Quick Reference
Dear Justin,
Thank you for your forum post!
PFE has a Qualitative Result of Defensive, and a Quantitative Result of 69.00%.
As it says in the "Final Graham Assessment" tab for PFE, the Quantitative Result (Intrinsic Value ÷ Previous Close) for a stock has to be 100% for Graham investment.
For Defensive quality stocks, Intrinsic Value = Graham Number and thus Quantitative Result = (Graham Number ÷ Previous Close).
For a more complete explanation of the terms used on Serenity, please see Quick Reference - Benjamin Graham and Serenity Stocks.