Very insightful and intriguing post, and much appreciated. Valuation, especially in today's market can be quite a challenge. There are so many factors involved today that it's very difficult to ascertain what is the true "free market value" of a company. You're very right bringing up the flaws of Graham's basic equation for finding value in a company. I consider myself a "value" investor and have read countless books on the subject, this style fits my personality and preference to a T, but have struggled mightily over the last decade finding value in this market, everything seems to be overbought, and hence have missed out on quite a few investments that would have been profitable. Amazon and Netflix both offered great opportunities but the numbers just didn't make sense. I've waited for pull backs, as history has shown they always happen to make a more economical entry point, but this market seems to know only one way, and that is up.