GrahamGrade
GrahamGrade
Fundamental Value Research
GrahamGrade runs a rigorous Benjamin Graham screen against public equities, then layers in an in-depth analysis on every surviving ticker, so you can focus on the ones that actually pass muster.
The Method Behind the Screen
"No noise. Just the numbers."
Benjamin Graham is widely considered the father of value investing. A professor at Columbia Business School, he spent decades developing a rigorous, repeatable framework for identifying stocks trading below their intrinsic value. His books, Security Analysis (1934) and The Intelligent Investor (1949), remain required reading in finance programs worldwide.
His most famous student: Warren Buffett. Buffett has called The Intelligent Investor "by far the best book on investing ever written," and built one of the most successful investment records in history by applying Graham's core principles: paying a fair price, insisting on financial soundness, and always demanding a margin of safety against error. Walter Schloss and Seth Klarman are among the other well-known investors who built lasting track records using variations of Graham's framework.
The approach works because it's grounded in math and patience, not prediction. GrahamGrade runs Graham's quantitative screen across every publicly traded U.S. stock, then, for each company that passes, automatically pulls a decade of SEC filings, analyzes them alongside the latest quarterly report, and produces a written qualitative assessment. Ten years of data, read and synthesized, for every surviving stock. That's what lands in your inbox.
The Proof
Cumulative growth of $10,000 invested at the start of 1995. Berkshire Hathaway (BRK.A) is Graham's methodology in practice — run by his most famous student for over five decades.
BRK.A annual total returns 1995–2024. S&P 500 total return index. Past performance does not guarantee future results.
Process
Every bi-weekly cycle runs the same way: no shortcuts, no index-hugging. We apply Graham's fundamental criteria to every publicly traded U.S. stock (roughly 5,000+ tickers), then analyze what makes it through.
Step 1
Each bi-weekly cycle, our screener applies Graham's fundamental criteria (P/E ratio, price-to-book, current ratio, and earnings stability) to every publicly traded U.S. stock. That's roughly 5,000+ tickers, tested against the same objective filters every time. Most fail. That's the point.
Step 2
Stocks that clear every filter in Step 1 get a written qualitative assessment drawn from SEC filings, covering business quality, earnings consistency, and margin-of-safety considerations. The quantitative screen determines who makes the list; the qualitative analysis explains what to make of them.
Step 3
Screener subscribers receive a bi-weekly report with every stock that passed the screen, including a written qualitative assessment for each ticker. Pro subscribers also receive a personalized monthly report analyzing each of their own holdings against Graham's criteria, with a written assessment, margin-of-safety calculation, and a Pass, Hold, Watch, or Fail rating for every position.
Father of Value
The screen is grounded in the criteria Benjamin Graham developed over decades. Filters designed to identify statistically cheap, financially sound businesses trading at a meaningful discount to intrinsic value.
Low P/E relative to the market and the company's own history. Paying a fair price for earnings power.
If a company earns $1 per share and you pay $10 for the stock, the P/E is 10. Graham wanted a P/E under 15 — the lower, the more earnings you're getting for your money. A high P/E means you're betting heavily on future growth that may never arrive.
P/B below thresholds that indicate the market is not pricing in aggressive growth assumptions.
Book value is roughly what a company would be worth if it sold everything and paid all its debts. A P/B below 1.5 means you're paying close to or less than the business's net worth on paper. Graham saw this as a built-in cushion against being wrong.
Adequate current assets relative to current liabilities. A basic test of near-term financial health.
Divide what the company can convert to cash within a year by what it owes within a year. Graham wanted that ratio above 1.5. A ratio below 1 means the company might struggle to pay its near-term bills a warning sign regardless of how profitable it looks on paper.
Consistent positive earnings over a multi-year lookback period. Cyclical losses are noted and weighed.
Graham wanted to see positive earnings every year for at least 10 years. A company that posts losses in bad years is harder to value and carries more risk. Consistency matters more than growth — if earnings disappear when times get tough, the investment case falls apart.
Preference for companies with an uninterrupted dividend history as evidence of management discipline.
Companies that pay dividends consistently are forced into financial discipline. You can't fake cash. Graham preferred an uninterrupted dividend history of at least 20 years. Cutting a dividend is a significant red flag; never paying one at all earns extra scrutiny.
The composite score reflects the overall discount to estimated intrinsic value, which is the central Graham concept.
Even the best analysis can be wrong. The margin of safety is the gap between what you pay and what the stock is actually worth. Buy at a big enough discount and you can be somewhat wrong and still come out ahead. It's Graham's central idea: price is what you pay, value is what you get.
The business economics should be understood from public filings alone. Complexity, opacity, or reliance on management projections are risk factors, not features.
If you can't explain how the company makes money from reading its annual report, that's a red flag. Graham avoided complex financial structures and businesses that required trusting management forecasts. If it's hard to understand, it's hard to value and hard to value means hard to know if you're getting a deal.
A ceiling price derived from earnings and book value: √(22.5 × EPS × BVPS). The basis for every margin of safety calculation in the report.
Multiply earnings per share by book value per share, then multiply by 22.5, then take the square root. The result is a fair price ceiling. A stock trading below that number passes both the P/E and P/B tests at once. GrahamGrade calls this the "Graham Price" — it's the anchor for every margin of safety in the report.
What You Receive
Each bi-weekly report lists every stock that passed the screen, with a written assessment for each. Here's what that looks like.
Illustrative example (fictional tickers for demonstration purposes only).
| Ticker | Sector | Price | Graham Price | MOS | P/E | P/B | Current Ratio | Earnings Quality | Recommendation |
|---|---|---|---|---|---|---|---|---|---|
| MVX | Industrials | $42.18 | $87.50 | +52% | 9.4 | 0.80 | 2.6 | Strong | PASS |
| HCF | Consumer Def. | $31.55 | $34.20 | +8% | 11.2 | 1.10 | 1.9 | Strong | PASS |
| RLT | Materials | $18.90 | $22.40 | +19% | 13.8 | 1.40 | 1.5 | Mixed | WATCH |
| BKP | Communication | $9.40 | $8.10 | -14% | 22.1 | 2.30 | 0.9 | Weak | FAIL |
Metrics
Qualitative Assessment
Every stock that clears the screen gets an entry like this. The full bi-weekly report typically covers 8–15 tickers.
Pricing
Both plans are billed monthly with no long-term commitment. Cancel anytime.
Screener
$8
per month
Pro
$12 $20
per month, limited time offer
Stock Analysis
$5
one time, no subscription
Just Getting Started
Foundations is built for anyone who wants to understand the Graham framework before diving into the reports. Get a full year of the Screener plus a one-hour introductory call where we walk through the methodology together and answer any questions you have.
Foundations
$125
one time
We walk through the core principles Benjamin Graham laid out in The Intelligent Investor (margin of safety, Mr. Market, the difference between price and value) and tie each concept directly to how GrahamGrade screens and scores stocks. You leave knowing exactly how to read the reports and what to do with them.
Anyone who is new to value investing, needs a refresher or doesn't know where to start. No prior finance background required.