I am reading Benjamin Graham's book and trying to apply to market, a few day after the krach, as I have free time. I'm puzzeled about some of the rules of Graham for the defensive investor to invest in a security is that Price over Earnings ratio must remain cheap. It should be below fifteen.

However it seems not to be the case for any of the company I looked up :

Facebook  20
Google    24
Netflix   81
Tesla     68.81

The only stocks where French ones.

Carrefour 9
PSA       3   
SoGé      4

even after the crisis. So are price over earnings always over Graham's recomendations on the US market ?

  • It sounds like you have already done the research and you found out the answer is yes? – user253751 Mar 16 '20 at 11:18
  • Rhetorical question: How's that Benjamin Graham analysis working out for everyone these days? – Bob Baerker Mar 16 '20 at 11:28
  • @BobBaerker I'm brand new to investing, sorry if my questions are silly. Are his analysis not relevant during crisis terms ? Or for digital companies ? Or even for the 21st century ? – Revolucion for Monica Mar 16 '20 at 12:07
  • 1
    No need to apologize. The question was rhetorical rather than directed at you. Let me start by saying that I know nothing about Graham analysis. My two cents is that fundamental analysis means squat right now. This is fear based selling and that is the driving force. I'd also offer that everything is undervalued now, possibly more so every day. – Bob Baerker Mar 16 '20 at 12:39


You selected some US stocks that have (very) high P/E ratios. There are many US stocks with P/E ratios below 15. Those include most big banks, airlines (obviously), retailers, oil/metals producers, etc.

All of the stocks you mentioned are technology stocks that Graham would likely have ignored anyway.

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