BENJAMIN GRAHAM'S CLASSIFICATION OF TYPE OF INVESTORS

SELF-REFLECTION QUESTION

1. Do you have time to analyse companies? (0: No time; 10: Plenty of time)

2. How much are you willing to lose your investments in stocks? (0: Little; 10: A lot)

3. Have you set aside enough cash to support yourself and/or your loved ones (children/parents)?

(0: Not enough; 10: More than enough)

4. Is your income stable now? (0: Unstable; 10: Very Stable)

SUGGESTED PORTFOLIO ALLOCATION

*ETFs was not mentioned in this chapter of The Intelligent Investor

TYPE OF INVESTOR

DEFENSIVE/PASSIVE INVESTOR
Backup Cash
25%
Cash/Bonds/*ETFs
75%
  • Stable & low return (<8%)
  • Highly Diversified
  • Minimal time
  • Not interested & don't want to be affected by stock market
  • "I don't want to know & I don't care" attitude
ENTERPRISE/ACTIVE INVESTOR
Backup Cash
25%
Stocks
75%
  • Not so stable & higher return (>10%)
  • Need to manage Portfolio
  • More time required
  • Regular monitoring of companies
  • "I want to know & I care" attitude

VIA TARGET PRICE CALCULATOR

Enter Stock Ticker Symbol
Step 1: Finding Growth Rate
Key in Past EPS
Key in Present EPS
Key in Number of Years
Growth Rate (%)
Adjusted Growth Rate (%)
Step 2: Key in Years of Continuous Growth
Step 3: Assumed Discounted Rate (%)
Growth Value
Step 4: Determine Inflation Rate
Step 5: Determine Years of Survival After Growth Ends
Stagnant Value
Net Present Value of Stock is
Step 6: Add Margin of Safety
Target Buy Price

FUNDAMENTAL DATA

Growth Profitability and Financial Ratios for Coca-Cola Co
Financials
2012-12 2013-12 2014-12 2015-12 2016-12 2017-12 2018-12 2019-12 2020-12 2021-12 -
Revenue USD Mil 48,017.00 46,854.00 45,998.00 44,294.00 41,863.00 35,410.00 31,856.00 37,266.00 33,014.00 38,655.00 -
Gross Margin % 60.32 60.68 61.11 60.53 60.67 62.56 63.05 60.77 59.31 60.27 -
Operating Income USD Mil 10,779.00 10,228.00 9,708.00 8,728.00 8,626.00 9,002.00 9,341.00 10,269.00 9,725.00 11,039.00 -
Operating Margin % 22.45 21.83 21.11 19.70 20.61 25.42 29.32 27.56 29.46 28.56 -
Net Income USD Mil 9,019.00 8,584.00 7,098.00 7,351.00 6,527.00 1,248.00 6,434.00 8,920.00 7,747.00 9,771.00 -
Earnings Per Share USD 2.00 1.94 1.62 1.69 1.51 0.29 1.51 2.09 1.80 2.26 -
Dividends USD 1.02 1.12 1.22 1.32 1.40 1.48 1.56 1.60 1.64 1.68 -
Payout Ratio % 51.78 56.74 66.39 82.48 83.64 140.38 210.96 84.57 84.46 82.27 -
Shares Mil 4,469.00 4,402.00 4,366.00 4,324.00 4,312.96 4,260.67 4,268.13 4,280.13 4,302.13 4,325.13 -
Book Value Per Share USD 7.34 7.30 7.66 6.02 6.08 5.19 4.28 4.37 4.33 5.13 -
Operating Cash Flow USD Mil 10,645.00 10,542.00 10,615.00 10,528.00 8,796.00 7,106.00 7,627.00 10,471.00 9,844.00 12,625.00 -
Cap Spending USD Mil -2,780.00 -2,550.00 -2,406.00 -2,553.00 -2,262.00 -1,675.00 -1,347.00 -2,054.00 -1,177.00 -1,367.00 -
Free Cash Flow USD Mil 7,865.00 7,992.00 8,209.00 7,975.00 6,534.00 5,431.00 6,280.00 8,417.00 8,667.00 11,258.00 -
Free Cash Flow Per Share USD 1.72 1.79 1.85 1.94 1.47 1.41 1.29 1.90 1.69 2.70 -
Working Capital USD Mil 2,507.00 3,493.00 612.00 6,465.00 7,478.00 9,351.00 1,411.00 -6,562.00 4,639.00 2,595.00 -
Profitability 2012-12 2013-12 2014-12 2015-12 2016-12 2017-12 2018-12 2019-12 2020-12 2021-12 -
Tax Rate % 23.06 24.84 23.60 23.31 19.49 82.47 19.44 16.70 20.32 21.09 -
Net Margin % 18.78 18.32 15.43 16.60 15.59 3.52 20.20 23.94 23.47 25.28 -
Asset Turnover (Average) 0.58 0.53 0.51 0.49 0.47 0.40 0.37 0.44 0.38 0.43 -
Return on Assets % 10.86 9.74 7.80 8.07 7.36 1.42 7.52 10.52 8.92 10.76 -
Financial Leverage (Average) 2.63 2.71 3.04 3.53 3.78 5.15 4.90 4.55 4.52 4.10 -
Return on Equity % 28.00 26.03 22.36 26.31 26.85 6.22 37.79 49.61 40.48 46.20 -
Return on Invested Capital % 14.27 12.58 9.86 10.63 9.53 2.02 10.58 15.11 13.89 16.92 -
Interest Coverage 30.75 25.79 20.31 12.22 12.10 9.02 10.09 12.40 7.78 8.78 -
Liquidity/Financial Health 2012-12 2013-12 2014-12 2015-12 2016-12 2017-12 2018-12 2019-12 2020-12 2021-12 -
Current Ratio 1.09 1.13 1.02 1.24 1.28 1.34 1.05 0.76 1.32 1.13 -
Quick Ratio 0.77 0.90 0.81 0.89 0.98 0.90 0.66 0.56 0.96 0.81 -
Financial Leverage 2.63 2.71 3.04 3.53 3.78 5.15 4.90 4.55 4.52 4.10 -
Debt/Equity 0.45 0.58 0.63 1.11 1.29 1.83 1.49 1.45 2.08 1.66 -

GRAPHS

SUMMARY OF RESULTS OF VIA FUNNEL

NO VIA CRITERIA DESCRIPTION PASS/FAIL
1 Criteria #2a EPS (Positive) PASS
2 Criteria #2b EPS (Uptrend) FAIL
3 Criteria #2c Gross Margin > 40% PASS
4 Criteria #2d Gross Margin (Uptrend) FAIL
5 Criteria #3a Operating Cash Flow (Positive) PASS
6 Criteria #3b Operating Cash Flow (Uptrend) FAIL
7 Criteria #3c Free Cash Flow (Positive) PASS
8 Criteria #3d Free Cash Flow (Uptrend) FAIL
9 Criteria #4a ROE > 15% PASS
10 Criteria #4b ROE (Uptrend) FAIL
11 Criteria #5a ROA > 7% PASS
12 Criteria #5b ROA (Uptrend) FAIL
13 Criteria #6a Debt/Equity < 0.5 FAIL

Earnings Per Share

Gross Margin %

Operating Cash Flow

Free Cash Flow

Return on Assets %

Return on Equity %

Debt/Equity

VIA FINANCIAL FREEDOM ROADMAP