0

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
1

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

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.