Been Awhile...Posting the Graham Number and ROE of PSE's Index stocks

Hello All,

My sincerest apologies that I have not been posting. I've been quite busy with work and still trying to find that "Holy Grail" of investing. When I began this blog, I was sorely focused in using fundamental analysis when analyzing stocks in the Philippine Stock Exchange.

Lately, I've been studying Technical Analysis and see if the "Holy Grail" was there. Alas, it wasn't. I know many of you will think that value investing is the true grail, but I need to face the music...I suck at discounted cash flows. I can never stick to what percentages to use as growth rate. When I do, I then second-guess myself until I become paralyzed in my analysis.

Anyway, back to basics. I'll be posting summarized data for you such as the Graham's Number for Stocks and a complete ROE list for all stocks in the PSE. For now, this post will only cover the 30 stocks in the PSE index. Below is the screenshot:



The Graham Number's formula is the square root of (22.5*EPS*BVpS). I'm sure you have heard of Bo Sanchez and his Truly Rich Club.The number by itself should not be construed as the "end-all" intrinsic value of the stock since there are other factors that need to be considered. Such factors include debt management, ROE, growth in earnings year-on-year, management honesty and such.


The purpose of my using the Graham Number is to do a quick-scan of potential inexpensive stocks. I then review the company's ROE and benchmark it against other company's in that industry.

I'm sure you have heard of Bo Sanchez and his Truly Rich Club(TRC). It was in TRC that I learned of the concept of the Buy Below Price(BBP). I consider the BBP as a cushion or my own margin of safety(MoS). I know that Benjamin Graham meant other factors when he wrote about MoS, but as I mentioned already, this is for the purpose of doing my quick-scans.

CP stands for Current Price. The IF-ELSE statement in the spreadsheet will automatically tell me if the current price is below my MoS or BBP with a simple Yes or No.

I am slowly doing the entire list of PSE stocks but it might take awhile. Please note that the data used in this spreadsheet is for the 3rd quarter of 2015.

I will also begin to post technical analysis on "hot stocks" and where their possible supports and resistances may lie.

Thats all for now and as always Caveat.

~Crimson