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certainly first used in connection with the theory of value investing as developed initially by Graham in Security Analysis in 1934.

Later editions

Starting in 1962, Benjamin Graham describes in the fourth and subsequent editions a heuristic he used to value stocks first stated in his 1949 book, The Intelligent Investor, as follows:

:

V = Intrinsic Value
EARNINGS = Trailing Twelve Months Earnings
8.5 = P/E base for a no-growth company
g = reasonably expected 7 to 10 year growth rate

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