IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v8y2019i3p169.html
   My bibliography  Save this article

Corroborate Benjamin Graham’s Approach of Valuing Equity with Special Reference to Indian Capital Market

Author

Listed:
  • Suyash Bhatt

Abstract

In this research we reconnoiter the effectiveness of Benjamin Graham’s formula for the Indian market and calculated the returns on BSE100 stocks for a tenure of a decade. Benjamin Graham devised a technique to calculate intrinsic value of stocks. His approach emphasized on buying the stocks with market value less than intrinsic value and selling the stocks with market value less than the intrinsic value. This strategy helped him to invest in stocks with less risk. The technique was originally developed by Graham in 1962 and reviewed by him in 1974. He offered a simple and effective formula to calculate the stock’s intrinsic value. Graham’s formula is used to measure an individual company’s intrinsic value. In this paper we wanted to study the effectiveness of Benjamin Graham’s formula on BSE100 stocks, to find out if the value investing method works. This method also helps investor to swiftly and precisely categorize underrated companies and expensive companies. We have conducted research based on past 10 years’ data to validate our findings.

Suggested Citation

  • Suyash Bhatt, 2019. "Corroborate Benjamin Graham’s Approach of Valuing Equity with Special Reference to Indian Capital Market," Accounting and Finance Research, Sciedu Press, vol. 8(3), pages 169-169, August.
    • Handle: RePEc:jfr:afr111:v:8:y:2019:i:3:p:169
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/16068/10007
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/16068
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Suyash Bhatt, 2013. "An Empirical Study to Evaluate CAMELS Rating System on Indian Banks," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(3), pages 156-167.
    2. Suyash Bhatt, 2013. "An Intricate Multiple-Factor Approach To Evaluate Performance Of Indian Mutual Fund," European Journal of Business and Economics, Central Bohemia University, vol. 8(2), pages 1-51:8, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saroj Upadhyay & Sudeshna Gupta, 2016. "Taking a Relook into the Decision Making Process in Indian Banking Sector with Respect to Non-Performing Asset Management," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(3), pages 193-202, August.
    2. Anatoliy G. Goncharuk, 2016. "Banking Sector Challenges in Research," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(1), pages 34-39, February.
    3. Yiyou Wang, 2016. "An Exploratory Study of Interest Rate Liberalization in Commercial Banks in China," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(4), pages 270-279, November.
    4. Mihir Dash & Ravi Pathak, 2016. "Canonical Correlation Analysis of Asset-Liability Management of Indian Banks," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 75-81, May.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:afr111:v:8:y:2019:i:3:p:169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.