Ideas · Quality compounders below Graham Number
Quality compounders trading below Graham Number — week 2026-W40
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 |
|---|---|---|---|---|
| NFLX | $67.06 | $105.38 | 36.4% | 30.5% |
| IPAR | $113.95 | $174.05 | 34.5% | 20.1% |
| LNTH | $99.96 | $141.86 | 29.5% | 37.8% |
NFLX
Netflix
- Trades at $67.06 vs Graham intrinsic $105.38 → ~36% margin of safety on the formula.
- 10-year average ROIC about 30.5%.
- 10-year average ROE about 28.1%.
- Revenue CAGR (10y) about 19.9%.
- Yield on retained capital ≈ 56.1%.
IPAR
INTERPARFUMS INC
- Trades at $113.95 vs Graham intrinsic $174.05 → ~34% margin of safety on the formula.
- 10-year average ROIC about 20.1%.
- 10-year average ROE about 15.5%.
- Revenue CAGR (10y) about 12.4%.
- Yield on retained capital ≈ 34.1%.
LNTH
Lantheus Holdings, Inc.
- Trades at $99.96 vs Graham intrinsic $141.86 → ~30% margin of safety on the formula.
- 10-year average ROIC about 37.8%.
- 10-year average ROE about -10.8%.
- Revenue CAGR (10y) about 19.9%.
- Yield on retained capital ≈ 36.7%.
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.