You are a value investor and are interested in applying the historical average graham number to calculate the intrinsic value of a stock. This company has earnings per share (EPS) of $3.65 and book value per share (BVPS) of $24.76. You have observed that the current P/E ratio of the company is 20.4, but its 5-year historical average is 18.2. You have observed that the current P/B ratio of the company is 2.72, but its 5-year historical average is 3.47. 

What is the estimated intrinsic value for this stock?

Answer rating: 100% (QA)

To calculate the estimated intrinsic value using the historical average Graham number we need to con... View the full answer