3 Overvalued Stocks Investors May Want To Avoid When Applying Graham's Number [View article]
Are you serious? According to your formula, having a high book value makes a stock overpriced while having no book value makes it a bargain. A stock with a Price of $1 million per share and earnings of $1 per share with a book value of 10 cents per share would be valued at $4,743 according to your formula. If anything, that would be the overpriced stock. NAFC has a book value alone of $33 per share and earnings of $2.59 per share. It also has a long uninterrupted history of paying dividends. Your valuation of $6.10 per share on a profitable stock with a book value of $33 per share makes absolutely no sense whatsoever.
3 Overvalued Stocks Investors May Want To Avoid When Applying Graham's Number [View article]