Benjamin Graham's Stock Valuation Formula (Case study of PT. Wintermar Offshore Marine)

Abstract

Before making investment decision in stock or company, Investors must do the deep analyze to find the company with durable competitive advantage, but after they have found it, usually question is “how much is it worth? Is it undervalue? Benjamin Graham is Father of value investing, and He is the mentor of the best investor in the world is Warren Buffet. Benjamin Graham creates a simple formula to find under value company. In this paper, we will value PT. Wintermar Offshore Marine Tbk and PT. Trada Maritime Tbk use Benjamin Graham’s formula adjusted with Indonesia condition, both companies specialized in marine industry that have the same focusing on serving the offshore marine industry.