This is stock analysis question.

Grahams intrinsic value calculation, per se, is interesting, but it isnt of much practical value since it hinges on analysts long-term earnings growth forecasts. While analysts strive to accurately predict a companys current quarters earnings, theyll undoubtedly revise their forecasts for the next quarter based on the current quarters results. Consequently, their long-term growth forecasts are likely to be considerably off the mark. However, Grahams formula can be very insightful used another way. If you substitute the current stock price for intrinsic value and implied earnings growth for forecast growth, and then do some algebraic manipulation, you get: Implied growth rate = P/E (AAA bond yield /8.8) 4.25 Implied growth, as defined it, is the long-term average annual earnings growth that the company would have to achieve to justify its current P/E.

• Use AAA (highest quality) corporate bond rates as a proxy for prevailing interest rates 4.4 percent when he first devised the formula, so the revised version looks like:

Provide an example of a growth company with an implied growth rate?