GRAHAM-DODD STOCK SCREENER

NOTE: Please be careful in how you use the intrinsic value estimates shown here. Do not take them at face value. They are used here for a rough stock screening purposes only. A thorough analysis of each individual secutiry is needed before an investment decision is made.

Intrinsic value = x (Book value - Goodwill) + (Net income-Dividends)/% + (Dividends)/%

Margin of safety ≥ %                                    

Stocks Listed in the USA

Ticker   Company name
 Equity
$ mln
 Goodwill
$ mln
 Net income
(3-yr avg.)
$ mln
 Dividends
 (3-yr avg.)
$ mln
 Payout
ratio
%
 Dividend
yield
%
 Number of
shares
mln
 Stock
price
 $/share
 Intrinsic
value
 $/share
 Margin of
safety
$/share
 Margin of
safety
%
AAWW 
 1318
 0
123
0
0
0
25
35.27
77.2
41.93
119
AHL 
 3300
 0
161
71
44
3
65
39.70
68.45
28.75
72
AIG 
 100470
 0
11645
0
0
0
1460
50.01
108.7
58.69
117
ANV 
 1736
 1914
285
11
4
5.9
104
4.31
12.51
8.2
190
AOSL 
 284
 0
30
0
0
0
26
7.36
16.72
9.36
127
AP 
Ampco-Pittsburgh
 235
 0
15
7
47
3.8
10
18.87
33.27
14.4
76
APA 
 33396
 1369
3206
288
9
1
394
82.95
125.7
42.75
52
ARO 
 281
 29
112
0
0
0
78
5.02
10.35
5.33
106
AWH 
 3520
 268
478
48
10
2
33
103.19
177.17
73.98
72
AXS 
 5818
 46
483
182
38
3.1
110
45.85
82.51
36.66
80
BPI 
 348
 3
141
0
0
0
45
14.89
23.34
8.45
57
BRKS 
 632
 122
109
9
8
2.9
67
10.93
16.5
5.57
51
BSET 
 158
 0
27
7
26
13.3
11
14.85
30.17
15.32
103
CIX 
 1819
 0
353
248
70
212.2
12
10.23
389.03
378.8
3703
DO 
 4637
 0
879
571
65
7.2
139
48.76
85.49
36.73
75
ENH 
 2887
 0
145
71
49
3.1
44
53.83
89.41
35.58
66
ESI 
 203
 0
274
0
0
0
23
28.68
67.31
38.63
135
EZPW 
 941
 435
121
0
0
0
54
10.79
20.44
9.65
89
FSCI 
 121
 14
12
0
0
0
9
0.16
18.83
18.67
11669
FVE 
 310
 27
42
0
0
0
49
4.86
10.14
5.28
109
GARS 
 253
 0
198
100
51
0
17
14.13
104
89.87
636
GM 
 42607
 1560
7183
1142
16
1.7
1590
34.42
51.99
17.57
51
GMAN 
 42
 0
21
7
33
0
19
5.46
9.37
3.91
72
GMO 
 6308
 8649
1632
724
44
879.8
92
0.99
102.75
101.76
10279
GNW 
 14393
 867
138
0
0
0
495
17.73
28.7
10.97
62
GS 
 78467
 3705
6757
1767
26
1.5
453
163.85
259.26
95.41
58
GTS 
Triple-S Management
 784
 0
60
0
0
0
27
16.14
39.46
23.32
144
HCOM 
 313
 12
108
0
0
0
11
28.49
79.94
51.45
181
HGG 
 324
 0
56
0
0
0
29
9.61
20.48
10.87
113
IRDM 
 940
 87
42
0
0
0.2
77
7.51
13.83
6.32
84
ISH 
 336
 3
23
10
43
3.9
7
29.44
68.69
39.25
133
KCLI 
 724
 0
20
12
60
2.3
11
48.20
80.58
32.38
67
LPS 
 644
 1109
225
37
16
126.2
85
0.32
9.91
9.59
2997
MFLX 
 386
 0
32
0
0
0
24
12.80
22.67
9.87
77
MHLD 
 1124
 0
50
24
48
3.7
73
12.48
20.57
8.09
65
MITT 
 708
 0
1428
364
25
0.8
28
17.51
340.66
323.15
1846
NC 
 298
 0
117
27
23
8.8
9
54.21
107.84
53.63
99
NE 
 12792
 3274
783
265
34
25
42
32.74
347.57
314.83
962
NGPC 
 189
 0
3
14
467
9.2
21
6.76
13.37
6.61
98
NMFC 
 650
 0
51
29
57
3.3
48
14.55
21.92
7.37
51
NUS 
 9851
 1985
323
23
7
1
59
82.85
163.2
80.35
97
PERY 
 376
 14
21
0
0
0
16
13.74
29.78
16.04
117
PRE 
 6710
 456
489
205
42
4
52
103.50
185.43
81.93
79
PRI 
 1222
 0
188
437
232
0.6
55
47.11
79.59
32.48
69
PZG 
 138
 79
56
0
0
0
156
1.23
2.18
0.95
77
RDC 
 4894
 0
399
0
0
0
124
33.68
55.46
21.78
65
RELL 
 180
 2
38
2
5
2.2
14
10.76
26.96
16.2
151
RGA 
 5936
 7
571
47
8
1.1
71
79.63
127.41
47.78
60
RNR 
 3904
 8
429
96
22
2
44
97.60
146.84
49.24
50
SENEA 
 381
 0
26
0
0
0
11
31.48
47.58
16.1
51
SFL 
 1189
 0
163
105
64
7.3
93
17.97
27.12
9.15
51
SFY 
 1033
 0
55
0
0
0
43
10.76
30.08
19.32
180
SKYW 
 1435
 0
40
9
23
1.2
52
12.76
32.55
19.79
155
STRA 
 39
 7
101
47
47
9.4
11
46.43
71.22
24.79
53
TITN 
 407
 31
27
0
0
0
21
15.67
24.04
8.37
53
TNAV 
 209
 18
39
0
0
0
39
5.96
9.98
4.02
67
TWMC 
 178
 0
2
0
0
0
32
3.63
5.83
2.2
61
USMO 
 270
 133
63
28
44
4.2
22
18.17
27.33
9.16
50
UVV 
 1359
 0
139
60
43
4.6
23
55.89
101.38
45.49
81
VR 
 3704
 20
277
108
39
3.1
95
37.71
59.02
21.31
57

 

Security Analysis is arguably the most important book on value investing. You might be surprised, but there is no valuation methodology in the book. Benjamin Graham and David Dodd did not provide any indication that they used a formula or a specific algorithm for determining intrinsic value of common stocks.

The book, quite appropriately, is named "Security Analysis", not "Security Valuation". In the sections related to common-stock investment, it contains description of a general approach to selecting stocks. There is also a good treatise on how to adjust the income statement and balance sheet and what factors to look at in a comparison valuation. But you will be looking in vain for a well defined valuation process. Nonetheless, Security Analysis is a great book. It clearly distinguishes investing from speculation, and arms the investor with general guiding principles of investing.

The stock screener presented here is not the one used by the founders of the security analysis, but the one developed by us using the general approach to security valuation they employed. The stock screener compares intrinsic value of a stock with its current market price. The difference between them is called the margin of safety.

 

Following the spirit of Benjamin Graham and David Dodd's teachings, we assume that intrinsic value (V*) of a stock is composed of the following three components (on a per share basis):

  • Tangible book value (TBV), which serves as a proxy for assets' replacement costs or assets' fair value.
  • Value attributed to retained earnings, which are defined as the difference between Net Income (NI) and Dividends (Div). The value of this component is calculated as the value of a perpetual bond with the coupon equal to the company's average yearly retained earnings, and the required rate of return for retained earnings (RRRre) of 20%.
  • Value attributed to dividends. The value of this component is calculated as the value of a perpetual bond with the coupon equal to the company's average yearly dividend (Div) and the required rate of return for dividends (RRRd) of 10%.

Thus, using the Graham and Dodd's approach to security selection we came up with the following very simplified formula for valuation of common stocks:

           V* = TBV + ((NI – Div) / RRRre) + (Div / RRRd)