Looking for help in Building Screener based On B. Graham's Formula

Research
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I am new to this site and yet not fimilar with how to build a screener: The following is Ben Graham’s fundmental formula:

Ben Graham’s formula

REWARD CRITERIA:

  1. An earnings-to-price yield at least twice the AAA bond yield.

  2. A P/E ratio less than 40% of the highest P/E ratio the stock had over the past five years.

  3. A dividend yield of at least two-thirds the AAA bond yield.

  4. Stock price below two-thirds of tangible book value per share.

  5. Stock price below two-thirds “net current asset value.”

RISK CRITERIA:

  1. Total debt less than book value

  2. Current ratio greater than two.

  3. Total debt less than twice “net current asset.”

  4. Earnings growth of prior 10 years at least at a 7% annual compound rate.

  5. Stability of growth of earnings in that no more than two declines of 5% or more in year-end earnings in the prior 10 years are permissible.

I would appreciate any help in building this strategy.

Thanks

JT

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Reward Criteria
http://www.portfolio123.com/screen_summary.jsp?screenid=11875

Note:
I used the 10-year AAA Banking And Finance Bond Yield on Bloomberg.
I used MktCap instead of stock price because it would reduce the size of the equation. The math is still sound.

Risk Criteria
http://www.portfolio123.com/screen_summary.jsp?screenid=11878

Note:
Current Ratio is not calculated for Banks and Insurance companies. Read the factor description.
I have not figured out a method of calculating your criteria number 10, but I used the EPS#Positive factor as a substitute. You can consider adding the EPSStableQ factor in combination.

I hope is provides you a start to building the type of screen that you wish to have.

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Hi Charles,

The 2 links you provided in regards to answering Jay’s question don’t display in Internet Explorer 7. Get error message “Internet Explorer cannot display the webpage” . I did verify that other screens of mine display just fine.

By the way, I really appreciate the help you are providing on recent questions various members are asking such as this and PEG, etc. Very helpful all around. Thank you.

Kurt

4

The links have been edited.

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Thanks for your help chasfiji :slight_smile: