Discover which oil stocks are undervalued with the Graham number.
The Graham Number offers a simple method of estimating the fair value of a stock, given only the EPS and book value per share. You’ll find many other articles across the web discussing the formula and its limitations, so we won’t retread familiar material here
This Excel spreadsheet contains a list of 227 oil stocks, listed on the NYSE, TSE, LSE and many exchanges. These include major integrated oil and gas companies, and oil service companies.
It calculates the Graham Number based on live market prices – you just click a button.Some clever coding grabs the market cap, EPS, PE ratio, Book value and last trade price from the web. It then calculates the Graham Number,
If the Graham Number is lower than the last trade price, the stock is good value (and vice-versa). Fairly valued stocks are highlighted in green, while expensive stocks are highlighted in red.
It goes without saying that the Graham Number should not be the only tool used to decide whether you buy or dump stock. But it might tip the scales either way.
You’ll find a similar spreadsheet that values electric utility companies here.