Craig asked in Business & FinanceInvesting · 1 month ago

How to calculate a companies expected annual growth rate?

Basically I have been using this time in lock down to study the stock-market by readings books like "The Intelligent Investor" and "How to Own the World".

I've come across a formula by Benjamin Graham for assessing a company:

Value = Current (Normal) Earnings x (8.5+2 x Expected Annual Growth Rate)

Would somebody be able to break this down for me please?

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