33 lines
1.5 KiB
C#
Executable File
33 lines
1.5 KiB
C#
Executable File
using System;
|
|
using System.Collections.Generic;
|
|
using System.Linq;
|
|
using System.Text;
|
|
using System.Threading.Tasks;
|
|
|
|
namespace MarketData.Generator
|
|
{
|
|
public class GrahamGenerator
|
|
{
|
|
// EPS: Earnings per share
|
|
// Growth: eps growth in decimal percent (i.e.) .25 represents 25%
|
|
// Benjamin Graham Formula. EPS=Trailing Twelve month, 8.5=PE base for no growth company, g=reasonably expected 7-10 year growth rate
|
|
public static double IntrinsicValue(double eps,double growth)
|
|
{
|
|
return eps * (8.5 + (2 * (growth * 100)));
|
|
}
|
|
// Grahams revision which includes a required rate of return of 4.4% which is what the going risk free rate was. Today we divied by AAA Corporate Bond Rate
|
|
public static double IntrinsicValueRevised(double eps,double growth,double riskFreeRate)
|
|
{
|
|
double requiredReturn=4.4;
|
|
return (eps * (8.5 + (2 * (growth * 100))) * requiredReturn) / riskFreeRate;
|
|
}
|
|
// The Graham number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share.
|
|
// The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below
|
|
// the Graham number is considered undervalued and thus worth investing in. The formula is as follows:
|
|
public static double GrahamNumber(double eps,double bvps)
|
|
{
|
|
return Math.Sqrt(22.5*eps*bvps);
|
|
}
|
|
}
|
|
}
|