http://seekingalpha.com/article/731131-3-drugmakers-deeply-undervalued-by-the-graham-number?source=yahooThe Graham Number is a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.It is based off of a stock's EPS and book value per share (BVPS).Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)For FRX, the article used $3.57 as TTM EPS and gotGraham Number fair value = sqrt(22.5*3.57*21.37) = $41.43However, FRX has had $3.57 EPS no more. A few weeks later, the published TTM EPS, for FRX, will be about $0.80, and the "fair value" becomesGraham Number fair value = sqrt(22.5*0.80*21.37) = $19.61And a lower value will be with lower EPS!!!!
Um, no. One quarter of EPS in the 20's does not make a one year trailing earnings of 4x that, you have to add up the 4 prior quarters.But I see you're the same dolt posting typical Yahoo retardness on this stock day in and out, so enjoy your little hell.