Classic Value And Modern Value Investing theory

Classic - Benjamin Graham Value Investing

For Stock Value Issues

• Return of Investment(ROI) greater than AAA Corporate Bonds 2 times
• Price to Earning Ratio(P/E) of the stock less than 40% of the average P/E at last 5 years
• Dividend Yield is greater than 2/3 of AAA Corporate Bond Yield
• Stock price is less than 2/3 of Tangible Book Value

For Safely Margin Issues

• Current Assets is less than Twice Current Liabilities
• Debt is less than twice Net Current Assets
• Over Last 10 years, Historical Growth in Earning Per Share(EPS) is greater than 7%
• Profit Stable: Over the past ten years, no more than 2 years had negative earnings

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