Benjamin Graham Net-Net Working Capital Screener


What are Benjamin Graham's Net Current Asset Value Bargains?

In The Intelligent Investor, Benjamin Graham discussed the methods he used in his investment firm Graham_Newman. One is them is what he called Net-Current-Asset (Or “Bargain”) issues. He wrote:

The idea here was to acquire as many issues as possible at a cost for each of less than their book value in terms of net-current-assets alone – i.e., giving no value to the plant account and other assets. Our purchases were made typically at two-thirds or less of such stripped-down asset value. In most years we carried a wide diversification here – at least 100 different issues.

Graham’s “net current asset value” approach, apparently works very well. One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham’s strategy produced similar results.

Ben Graham loved these types of situations, defining the Net Current Asset Value (NCAV) or Liquation value as:

Net Current Asset Value (NCAV) = Current Assets - total liabilities

and Net Cash as

Net Cash = Cash and short-term investments - total liabilities

Ben Graham loved these types of situations, defining the net-net working capital (NNWC) value as:

Net-Net Working Capital (NNWC) = Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities

Graham looked for companies whose market values were less than two-thirds of that net-net value.

With this in mind, GuruFocus has created a Graham Net-Net Working Capital screener to filter out the companies that meets the net-net value criteria. The rules are:

  • The stock prices are less than the net current asset value of the companies – Benjamin Graham. The companies with Price/NNWC between 100% to 300% are also displayed for you to get more investment ideas.
  • During the past 12 months, the companies generated positive operating cashflow. The ones with negative operating cashflow is also displayed.
  • The company has no meaningful debt compared to its cash position.
  • According to Benjamin Graham, some of these companies may well go under as economic conditions worsen, it is important to hold a diversified group of them.

The performance of the stocks can be seen in user portfolios, described in this article



Regions

Currently Selected:
Show All Countries ▾

This information is for Premium Members Only.


Take the full advantage of Gurus' investment ideas now.

7-Day Free Trial
Symbol Company Price Net Current Asset Value (NCAV) Price/NCAV (%) Net-Net Working Captial (NNWC) Price/NNWC (%) Oprt. Cash Flow per share(12m) ($) Market Cap ($mil)
Premium Member OnlyPremium Member Only2.81$5.98212.80.69301.292
Premium Member OnlyPremium Member Only0.45$1.33295.6-0.5714.247
Premium Member OnlyPremium Member Only3.02$8.26273.50.051128.984
Premium Member OnlyPremium Member Only0.80$1.34167.5-0.1527.422
Premium Member OnlyPremium Member Only6.54$13.67209-2.20299.770
Premium Member OnlyPremium Member Only14.81$37.10250.55.12156.473
Premium Member OnlyPremium Member Only0.74$0.83112.20.029.871
Premium Member OnlyPremium Member Only5.45$3.5865.7-1.10148.027
Premium Member OnlyPremium Member Only5.33$5.64105.8-1.1375.642
Premium Member OnlyPremium Member Only10.13$24.74244.20.02577.811
Premium Member OnlyPremium Member Only1.02$1.53150-0.02698.729
Premium Member OnlyPremium Member Only0.63$0.80127-0.0356.765
Premium Member OnlyPremium Member Only3.29$9.46287.5-1.31111.410
Premium Member OnlyPremium Member Only3.32$8.13244.9-1.10309.034
Premium Member OnlyPremium Member Only0.45$0.58128.90.004.654
Premium Member OnlyPremium Member Only1.97$5.21264.50.05174.838
Premium Member OnlyPremium Member Only1.09$3.04278.90.5851.559
Premium Member OnlyPremium Member Only2.71$2.84104.8-1.3725.748
Premium Member OnlyPremium Member Only3.81$9.97261.7-2.15471.087
Premium Member OnlyPremium Member Only2.72$6.11224.6-1.55105.248
Premium Member OnlyPremium Member Only1.11$1.76158.6-0.7136.339
Premium Member OnlyPremium Member Only9.89$19.54197.6-1.66562.967
Premium Member OnlyPremium Member Only0.75$1.85246.7-0.9163.510
Premium Member OnlyPremium Member Only1.97$1.9297.5-0.1425.110
Premium Member OnlyPremium Member Only1.23$1.33108.1-0.3951.396
Premium Member OnlyPremium Member Only7.09$13.74193.81.572300.811
Premium Member OnlyPremium Member Only2.17$5.13236.40.34117.864
Premium Member OnlyPremium Member Only1.44$4.27296.50.14138.308
Premium Member OnlyPremium Member Only2.47$3.75151.8-6.2314.018
Premium Member OnlyPremium Member Only1.71$1.82106.4-1.7113.334

Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK
Sorry. Only PremiumPlus Member can access this feature.

Free Trial