Deep value checklist
Benjamin Graham was a legendary figure known as the ‘father of value investing’ and was a mentor to Warren Buffett. The following stock screen applies Graham’s 10-point checklist of valuation and financial measures. Devised not long before his death in 1976 this approach was more systematic than his other value investing strategies.
Interestingly this screen threw up several housebuilders. We discussed our reservations on housebuilders in last week’s Editor’s View column and this is an indication of why you need to take other factors into account when determining if a stock is genuinely undervalued.