I am looking to update the formula used by Benjamin Graham to calculate a stock's intrinsic value. His most recent formula can be found at http://en.wikipedia.org/wiki/Benjamin_Graham_formula.

The formula contains the number 4.4, which was the average yield of high-grade corporate bonds in 1962, which was when this model was introduced.

I am trying to make the formula more relevant and updated via replacing 4.4 with the current average yield on high-grade corporate bonds.

Does anyone know what this number is, or where I can find it?

Thank you for your time. All help is greatly appreciated.

  • That formula is no longer really usable. The definition of "high-grade" corporate bonds was AAA-rated, but only three US companies retain an AAA rating, which isn't really enough to get a meaningful average yield. – Mike Scott Mar 28 '15 at 20:16
  • What formula is usable? – Kelsey Mar 28 '15 at 20:18

Yahoo! Finance would list it as 3.30 for the 20 year corporate AAA bonds. This is using the criteria from the Wikipedia link you stated in the initial question.

  • where can I get this for eurozone high yield corporate bonds? -B -BB and C – CQM Dec 16 '15 at 16:19

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