25 Stocks Screened For Growth, Dividend Growth, And Value

Benjamin Graham wrote in his book The Intelligent Investor:
It always seemed, and still seems, ridiculously simple to say that if one can acquire a diversified group of common stocks at a price less than the applicable net current assets alone-after deducting all prior claims and counting as zero the fixed and other assets-the results would be quite satisfactory.
This still seems ridiculously simple to say, and lies near the heart of value investing. The basic formula of net current asset value (NCAV) is:
NCAV = current assets - total liabilities. Divide NCAV by the total shares outstanding, to find NCAV/share:
NCAV/share = (current assets - total liabilities)/outstanding shares This result can be compared against the stock price. If the stock price is less than the NCAV/share, buying shares would theoretically prove, in Graham's words, "quite satisfactory."
Graham's Net-Net Working Capital calculation, NNWC, is an even stricter measurement than NCAV. The theory behind NNWC is that if a company is liquidated, the calculation expects that only 75% of accounts receivable will be realized, and only 50% of the value of inventory.
NNWC = ((0.75 * accounts receivable) + (0.50 * inventory) + remaining current assets) - total liabilities However, Graham used the net-net approach in an era before information and computers were so readily available. Today, net-net stocks are not pretty. They are typically companies that are facing significant problems, whether internally... Read more