Graham Enterprising

# Graham Enterprising — scoring rules

Source: Benjamin Graham, *The Intelligent Investor*, chapter 15 ("Stock Selection for the Enterprising Investor"), plus his net-current-asset ("net-net") test from chapter 15 and *Security Analysis*. The defensive investor's tests are the separate "Graham Defensive" philosophy.

Score 0–100 = sum of points below. Inputs are SEC XBRL facts, each with its filing; missing inputs make a test `insufficient`. Financials are not scored.

| # | Test | Points | Scoring | Inputs |
|---|---|---|---|---|
| 1 | Current ratio >= 1.5 | 15 | linear: 1.0 -> 0, 1.5 -> 15 | AssetsCurrent / LiabilitiesCurrent |
| 2 | Total borrowings <= 110% of working capital (current assets minus current liabilities) | 15 | linear: 1.1x -> 15, 2.2x -> 0; working capital not positive -> 0 | borrowings as in Magic Formula |
| 3 | No earnings deficit in the last 5 years | 15 | 3 points per profitable year; five consecutive years required | NetIncomeLoss |
| 4 | Pays a current dividend | 10 | pass/fail | Yahoo Finance ex-dividend history |
| 5 | EPS higher than five years earlier | 10 | pass/fail | EarningsPerShareDiluted (split-adjusted) |
| 6 | Price <= 120% of book value per share | 20 | linear: 1.2 -> 20, 2.4 -> 0; equity not positive -> 0 | StockholdersEquity, point-in-time share count |
| 7 | Price vs net current asset value per share, where NCAV = current assets minus ALL liabilities | 15 | linear: price <= 0.67 x NCAV -> 15, 1.5 x -> 0; NCAV not positive -> 0 | AssetsCurrent, Liabilities |

Deviations from Graham, stated: test 6 uses book value, not net tangible assets, because intangibles are not separated in the dataset, so it is stricter than Graham's; test 2 reads "net current asset value" in Graham's debt rule as working capital; Graham's absolute dollar and P/E thresholds are the original ones, not inflation-adjusted.