Ideas · Growth at a Graham discount
Growth names still under Graham Number — week 2026-W36
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 |
|---|---|---|---|---|
| TCMD | $21.87 | $29.10 | 24.8% | 13.2% |
| HLI | $137.11 | $185.03 | 25.9% | 38.7% |
| FHI | $62.40 | $83.47 | 25.2% | 28.0% |
TCMD
TACTILE SYSTEMS TECHNOLOGY INC
- Trades at $21.87 vs Graham intrinsic $29.10 → ~25% margin of safety on the formula.
- 10-year average ROIC about 13.2%.
- 10-year average ROE about 4.4%.
- Revenue CAGR (10y) about 16.3%.
- Yield on retained capital ≈ 54.0%.
HLI
HOULIHAN LOKEY, INC.
- Trades at $137.11 vs Graham intrinsic $185.03 → ~26% margin of safety on the formula.
- 10-year average ROIC about 38.7%.
- 10-year average ROE about 20.4%.
- Revenue CAGR (10y) about 13.0%.
- Yield on retained capital ≈ 37.1%.
FHI
FEDERATED HERMES, INC.
- Trades at $62.40 vs Graham intrinsic $83.47 → ~25% margin of safety on the formula.
- 10-year average ROIC about 28.0%.
- 10-year average ROE about 29.7%.
- Revenue CAGR (10y) about 5.2%.
- Yield on retained capital ≈ 92.0%.
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.