If you read this blog, you know I am a huge fan of both Warren Buffet and Ben Graham (author of 'The Intelligent Investor', the bible of sound investing).

One of the concepts of value investing is the concept of a 'margin of safety' - or, to purchase at a price which provides a cushion of safety.

Brief Overview

Graham's formula is as follows:

Intrinsic Value = "normal" earnings x (8.5 + (2 x expected 5 yr growth)) x (4.4/20yr AA corp bond)

Sound confusing?

Then don't worry. A smart guy over at Old School Value has created an Excel spreadsheet that will download all the necessary data for you, and perform the calculation. A double threat spreadsheet!

Download it here.