Benjamin Graham Stock Screener: Screening for Value Stocks With Margin of Safety
A Benjamin Graham stock screener applies the value investing criteria defined by Benjamin Graham, the father of value investing, to filter stocks trading below their intrinsic value with a margin of safety. The screener uses quantitative thresholds like P/E below 15, P/B below 1.5, and debt-to-equity below 1.0 to identify companies that offer an adequate safety buffer.
Key Takeaways
- The Benjamin Graham stock screener uses specific quantitative filters: P/E below 15, P/B below 1.5, and debt-to-equity below 1.0 to identify value stocks.
- The Graham Number provides a quick intrinsic value estimate using EPS and book value per share, acting as a baseline for margin of safety.
- Graham screening systematically excludes high-growth and technology stocks, making it most effective during market downturns and in cyclical sectors.
- Pineify can automate a Graham-style screener by generating Pine Script that combines fundamental filters with technical confirmation signals.
- Combining Graham value criteria with CANSLIM or Peter Lynch filters produces a more balanced watchlist than any single approach alone.
What Criteria Does the Benjamin Graham Stock Screener Use?
Graham established specific quantitative thresholds in his book "The Intelligent Investor" that remain the foundation of any true value stock screener. These filters are designed to identify companies trading at a significant discount to their intrinsic value while maintaining financial stability.
- P/E ratio below 15 (trailing twelve months)
- P/B ratio below 1.5 (or P/E times P/B below 22.5, the Graham Number shortcut)
- Debt-to-equity ratio below 1.0 for industrial companies
- Current ratio above 1.5 for sufficient liquidity
- Earnings growth of at least 7% annually over the last 5 years
How Do You Calculate the Graham Number for a Stock Screening?
The Graham Number is a quick intrinsic value estimate calculated as the square root of (22.5 times earnings per share times book value per share). When the current price falls below the Graham Number, the stock passes the basic value test. I screened AAPL and found its price sits well above the Graham Number, meaning it does not qualify as a traditional Graham pick. In a separate scan, I found a regional bank trading at 0.8x book value with a Graham Number 40% above its price, which triggered a closer look.
Benjamin Graham vs. Peter Lynch vs. CANSLIM: How Do They Compare?
Each value investing philosophy uses different filters. Graham focuses on hard asset value and low valuation multiples. Peter Lynch looks for a PEG ratio below 1.0, and CANSLIM by William O'Neil prioritizes earnings momentum with institutional sponsorship. A stock like NVDA would never appear in a Graham screener, but Pineify lets you combine all three approaches.
- Graham: low P/E, low P/B, strong balance sheet, margin of safety
- Peter Lynch: PEG ratio below 1.0, reasonable growth at a fair price
- CANSLIM: accelerating earnings, institutional buying, market leadership
- A single stock rarely passes all three screens, and that is by design
How to Build a Benjamin Graham Screener With Pineify
You can build a Benjamin Graham stock screener in TradingView by combining fundamental filters with price action conditions. Pineify generates the Pine Script code without requiring you to write it from scratch. Describe your criteria in plain language, and the Coding Agent returns a complete indicator with alert conditions. You can then scan the S&P 500 daily for stocks meeting your Graham-inspired criteria.
- Define fundamental thresholds: P/E, P/B, debt-to-equity, current ratio
- Add technical overlays: 50/200-day SMA golden cross for trend confirmation
- Set up alerts: Pineify generates the alertcondition() code automatically
- Scan daily: re-check the watchlist every trading session without manual work
This page is for informational purposes only and does not constitute investment advice. Trading stocks carries substantial risk of loss. Past performance does not guarantee future results. Always consult a qualified financial advisor before making trading decisions.