Ideas · Quality compounders below Graham Number
Quality compounders trading below Graham Number — week 2026-W37
High ROIC businesses where the latest price sits under Benjamin Graham’s intrinsic-value formula (EPS × (8.5 + 2g) × (4.4 / Y)).
| Ticker | Price | Graham IV | MOS | ROIC 10y |
|---|---|---|---|---|
| HRMY | $41.52 | $90.01 | 53.9% | 45.2% |
| NVDA | $218.29 | $429.85 | 49.2% | 52.8% |
| LGCY | $10.15 | $19.60 | 48.2% | 41.4% |
HRMY
Harmony Biosciences Holdings, Inc.
- Trades at $41.52 vs Graham intrinsic $90.01 → ~54% margin of safety on the formula.
- 10-year average ROIC about 45.2%.
- 10-year average ROE about 32.9%.
- Revenue CAGR (10y) about 129.2%.
- Yield on retained capital ≈ 309.1%.
NVDA
Nvidia
- Trades at $218.29 vs Graham intrinsic $429.85 → ~49% margin of safety on the formula.
- 10-year average ROIC about 52.8%.
- 10-year average ROE about 55.5%.
- Revenue CAGR (10y) about 46.6%.
- Yield on retained capital ≈ 78.2%.
LGCY
Legacy Education Inc.
- Trades at $10.15 vs Graham intrinsic $19.60 → ~48% margin of safety on the formula.
- 10-year average ROIC about 41.4%.
- 10-year average ROE about 23.1%.
- Revenue CAGR (10y) about 34.5%.
- Yield on retained capital ≈ 190.6%.
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.