Ideas · Growth at a Graham discount

Growth names still under Graham Number — week 2026-W33

Reasonable PEG / solid ROIC names where price is still below the Graham intrinsic estimate — growth without paying full fantasy multiples.

Ticker Price Graham IV MOS ROIC 10y
CSV $36.44 $57.20 36.3% 22.8%
PHM $130.18 $263.06 50.5% 31.2%
RLI $63.77 $105.41 39.5% 26.1%

CSV

CARRIAGE SERVICES INC

  • Trades at $36.44 vs Graham intrinsic $57.20 → ~36% margin of safety on the formula.
  • 10-year average ROIC about 22.8%.
  • 10-year average ROE about 16.0%.
  • Revenue CAGR (10y) about 6.0%.
  • Yield on retained capital ≈ 458.4%.

PHM

PulteGroup

  • Trades at $130.18 vs Graham intrinsic $263.06 → ~50% margin of safety on the formula.
  • 10-year average ROIC about 31.2%.
  • 10-year average ROE about 22.1%.
  • Revenue CAGR (10y) about 9.5%.
  • Yield on retained capital ≈ 20.3%.

RLI

RLI CORP

  • Trades at $63.77 vs Graham intrinsic $105.41 → ~40% margin of safety on the formula.
  • 10-year average ROIC about 26.1%.
  • 10-year average ROE about 21.4%.
  • Revenue CAGR (10y) about 9.7%.
  • Yield on retained capital ≈ 30.7%.
How this list was built. Graham intrinsic per share = EPS × (8.5 + 2g) × (4.4 / Y), with Y = 5.1% AAA bond yield default used by Intrinsic Terminal’s screener engine. Growth g is capped in the engine (industrial 8%, tech/cyclical 15%). Names must pass the week’s quality/value preset, then price < Graham IV. Ranked by quality score, then margin of safety % = (Graham − price) / Graham. Plausibility gates: MOS between 12–60%, quality score ≥ 7 (0–10 scale), price ≥ $5, common-share ticker shape. Recently published tickers are excluded.
Educational screen only — not investment advice, not a recommendation to buy or sell. Models can be wrong; always read the filings.

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