Formulas

Clatch Price: ((15*PE/2*EPS)(2*PB/2*BVPS)(1.5*PS/2*SPS)(CurrentPrice/15*FEPS)(1 Year Target))^(1/5) This is based on the Graham Number intrinsic valuation calculation-- Square Root of (22.5) x (TTM EPS) x (MRQ Book Value per Share) . The Clatch Price also include the P/S, Forward PE, and 1 Year Target Price and adjusts ratios to the stocks current ratios giving it a complete pricing analysis of a stock. It tends to work best on blue chip type stocks.

Sample Size: 2/sqrt(sample size); if the sample size is 16, then (2/sqrt(16))=.50. As a rule of thumb, if a correlation or probability is greater than .50, a sample size of 16 is large enough. If the correlation or probability was 51% (close to 50%), then a higher sample size is recommended--the more proximate the data the better.