Graham's defensive investor screen

Benjamin Graham set out his rules for the "defensive investor" in The Intelligent Investor: someone who wants a sound portfolio without the work of deep analysis. He asked for companies of adequate size, in strong financial condition, with a long record of dividends and of growing earnings, bought at a moderate multiple of earnings and of book value.

stockrow applies those rules to today's figures. A company must be worth more than $2 billion, have current assets at least twice its current liabilities and less debt than equity, have paid a dividend for ten years without cutting it, have grown earnings per share by more than 3% a year over ten years, and trade below 15 times trailing earnings and 1.5 times book value. Graham asked for twenty years of dividends and compared the price with average earnings over three years; this screen uses the ten-year record and trailing earnings, so it is a close approximation rather than his exact test.

The rules

Market cap above $2.0B
Current ratio at least 2.0×
Debt/equity below 1.0×
P/E positive, up to 15.0×
P/B positive, up to 1.5×

7 companies match today

Open in screener
Ticker Company Sector P/E P/B Current ratio Debt/equity Market cap
SEB Seaboard Corporation Industrials 5.93 0.68 2.40 0.29 3.80b
LCII LCI Industries Consumer Cyclical 9.65 1.42 2.49 0.60 2.04b
MHO M/I Homes, Inc. Consumer Cyclical 10.25 0.99 7.65 0.29 3.19b
INGR Ingredion Incorporated Consumer Defensive 10.53 1.37 2.80 0.39 6.13b
TOL Toll Brothers Inc. Consumer Cyclical 10.66 1.47 4.53 0.32 12.34b
LEN.B Lennar Corporation Consumer Cyclical 14.50 0.84 4.94 0.20 38.81b
LEN Lennar Corporation Consumer Cyclical 14.57 0.84 4.94 0.20 18.46b
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Updated 17 October 2026.