In 1974 Benjamin Graham revised the formula that he earlier created to calculate the intrinsic value of a stock. I have run his formula on 24 of the hottest and most buzzed about stocks in today's market. I also determined the Relative Graham value (RGV) for each company, and any company with a RGV above 1 is a buy while any company below 1 is overvalued.
Here is the equation we used to calculate the intrinsic value of the following stocks
$14.37 x 14.50 x 4.4 = 916.80 / 3.84 = $238.75
$238.75 / $141.88 = 1.68 Relative Graham value (RGV)
Alphabet Inc. (GOOG)
$23.72 x 39.52 x 4.4 = 4,124.62 / 3.84 = $1,074.12
$1,074.12 / $722.16 = 1.48 Relative Graham value (RGV)
Amazon.com Inc. (AMZN)
$0.70 x 104.30 x 4.4 = 321.24 / 3.84 = $83.65
$83.65 / $625.31 = 0.13 Relative Graham value (RGV)
Alibaba (BABA)
$3.80 x 60.50 x 4.4 = 1,011.56 / 3.84 = $263.42
$263.42 / $83.44 = 3.15 Relative Graham value (RGV)
GoPro (GPRO)
$1.22 x 38.5 x 4.4 = 206.66 / 3.84 = $53.81
$53.81 / $25.02 = 2.15 Relative Graham value (RGV)
Glu Mobile (GLUU)
$0.06 x 68.50 x 4.4 = 18.08 / 3.84 = $4.70
$4.70 / $3.84 = 1.22 Relative Graham value (RGV)
Papa John's (PZZA)
$1.72 x 44.50 x 4.4 = 336.77 / 3.84 = $87.70
$87.70 / $68.05 = 1.28 Relative Graham value (RGV)
Under Armour (UA)
$0.98 x 56.06 x 4.4 = 241.73 / 3.84 = $62.95
$62.95 / $96.40 = 0.65 Relative Graham value (RGV)
Baidu (BIDU)
$5.33 x 56.50 x 4.4 = 1,325.03 / 3.84 = $345.05
$345.05 / $192.5 = 1.79 Relative Graham value (RGV)
Facebook (FB, Financial)
$0.98 x 61.10 x 4.4 = 263.46 / 3.84 = $68.60
$68.60 / $102.58 = 0.66 Relative Graham value (RGV)
Fitbit (FIT, Financial)
$0.78 x 63.50 x 4.4 = 217.93 / 3.84 = $56.75
$56.75 / $37.31 = 1.52 Relative Graham value (RGV)
Netflix (NFLX)
$0.38 x 68.50 x 4.4 = 114.53 / 3.84 = $29.82
$29.82 / $109.74 = 0.27 Relative Graham value (RGV)
Walt Disney (DIS)
$4.80 x 35.40 x 4.4 = 747.64 / 3.84 = $194.69
$194.69 / $115.54 = 1.68 Relative Graham value (RGV)
Groupon (GRPN, Financial)
$0.12 x 68.50 x 4.4 = 36.16 / 3.84 = $9.41
$9.41 / $4.03 = 2.33 Relative Graham value (RGV)
PayPal (PYPL, Financial)
$0.94 x 40.50 x 4.4 = 167.50 / 3.84 = $43.62
$43.62 / $37.90 = 1.15 Relative Graham value (RGV)
Apple (AAPL)
$9.22 x 32.72 x 4.4 = 1,327.38 / 3.84 = $345.67
$345.67 / $122.57 = 2.82 Relative Graham value (RGV)
Activision Blizzard (ATVI)
$1.27 x 33.50 x 4.4 = 187.19 / 3.84 = $48.74
$48.74 / $35.82 = 1.36 Relative Graham value (RGV)
CBS (CBS, Financial)
$5.38 x 41.20 x 4.4 = 975.28 / 3.84 = $253.97
$253.97 / $48.24 = 5.26 Relative Graham value (RGV)
Denny's (DENN, Financial)
$0.42 x 41.5 x 4.4 = 26.69 / 3.84 = $6.95
$6.95 / $11.07 = 0.62 Relative Graham value (RGV)
Hyatt Hotels (H, Financial)
$1.85 x 29.10 x 4.4 = 236.87 / 3.84 = $61.68
$61.68 / $49.76 = 1.23 Relative Graham value (RGV)
Kellogg (K, Financial)
$1.05 x 13.50 x 4.4 = 62.37 / 3.84 = $16.24
$16.24 / $68.09 = 0.23 Relative Graham value (RGV)
Red Robin Gourmet Burgers (RRGB, Financial)
$2.71 x 27.50 x 4.4 = 327.91 / 3.84 = $85.39
$85.39 / $71.03 = 1.20 Relative Graham value (RGV)
Monster Beverage (MNST, Financial)
$2.72 x 51.50 x 4.4 = 616.35 / 3.84 = $160.50
$160.50 / $134.70 = 1.19 Relative Graham value (RGV)
Whole Foods Market (WFM, Financial)
$1.67 x 27.92 x 4.4 = 205.15 / 3.84 = $53.42
$53.42 / $31.27 = 1.70 Relative Graham value (RGV)