Yes, this is right. I chose 12 because that was a maximum bound Benjamin Graham used in his analysis IIRC. Though, stocks have gotten more expensive on a relati

Yes, this is right. I chose 12 because that was a maximum bound Benjamin Graham used in his analysis IIRC. Though, stocks have gotten more expensive on a relative-basis in the last 40 years, so a more appropriate multiplier might be 13 or 14.