I just found that Benjamin Graham checklist before you make any attempt to buy stock.
Hope it can help you!!
1. An earnings-to-price yield at least twice the AAA
bond rate
2. P/E ratio less than 40% of the highest P/E ratio
the stock had over the past 5 years
3. Dividend yield of at least 2/3 the AAA bond yield
4. Stock price below 2/3 of tangible book value per
share
5. Stock price below 2/3 of Net Current Asset Value (NCAV)
6. Total debt less than book value
7. Current ratio great than 2
8. Total debt less than 2 times Net Current Asset
Value (NCAV)
9. Earnings growth of prior 10 years at least at a 7%
annual compound rate
10. Stability of growth of earnings in that no more
than 2 declines of 5% or more in year end earnings in the prior 10 years are
permissible.
