Graham's discipline of appraising value versus price based on financial statements and conservative assumptions.
Published: 2025-12-26
Definition
Security analysis studies the facts about a security—assets, earnings power, and risks—to estimate intrinsic value and compare it to price.
Graham's emphasis
He defines analysis as careful study grounded in established principles and insists the core question is whether an issue is worth more or less than it is selling for.
How to use it
Rebuild value from filings, apply conservative haircuts, and act only when a margin of safety exists between value and price.