Putting that same Graham's approximate valuation more...

Putting that same Graham's approximate valuation more visually...

Note how the market price per share at $30s or $40s last year are within the implied growth expectation of some 14% to 20% per annum for next decade? It's shown by the aqua range bar in the chart.

It might very well be the case if SRX recent studies excite the market. And for my money the results are quite exciting even though it, unfortunately, did not extend the overall survival in patients... improved quality of life, same OS, being able to compete as an alternative and/or a complementary treatment to existing treatment... these are awesome results.

Definitely not a declining business or one that's going to stagnate at some 2 to 2% growth for a decade as the market price implied.


Further... I've tried this on an old Washington Post purchase of Buffett back in the days. His valuation of the WP, as he mentioned in various interviews, works out pretty much on the dot with this Graham's rule of thumb.

That's not to say that it's applicable to all businesses. I mean business do deteriorate; most have high level of debt or whose industries could drastically change year to year.

For stable, established operations with high moats like SRX... I didn't even bothered to do the detailed analysis before I bought in.

Hope it'll work out...