CBS, Alibaba, GoPro, Groupon, Apple Are Some of the Best Stocks for Value Investors in Today's Market

Those are the top bets after running Benjamin Graham's Intrinsic Value formula on 24 of the hottest and most buzzed about stocks in today's market

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Nov 04, 2015
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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

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IBM (IBM, Financial)

$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)