Benjamin Graham\'s Six Esssentials to Evaluate Company

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Benjamin Graham's Six Esssentials to Evaluate Company


1) Profitability:  straight profit; profit per dollar of sales
                     Ben prefer the ratio of operating income to sales as an indicator of strength or weakness

2) Stability: the trend of per-share earings over a ten year period. No decline represents 100% stability

3) Growth of earnings per share compared to DJIA

4) Financial Position: a debt of no more than 50% of its current assets

5)  Dividend: a history of div payment without interruption. It is better to see div is paid at a fixed percentage of profits and show a steady pattern of growth

6) Price History: share price keeps pace by regular appreciation over the long term

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