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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (46137)	1/8/2012 10:36:26 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78704

I think you are better off using just the PE instead of the graham number. It does not make much sense to use the stated book number at all, since it is "path dependent". I get interested in tangible book (supposedly the liquidation value) if P/B is ~1 or less, but i don't care if it's 1.5 or 2 or 10. This graham number does not make any provisions for growth potential or leverage either. I think this Graham number is of very limited usefulness from my point of view.