As a value investor, I find the overemphasis on growth to be rather unsettling; it is very common to see analysts place a target price based almost entirely on earnings growth, eking out an unremarkable 5 to 10 percent capital yield gain as a call to buy a particular stock. I am currently reading a book – Value Investing: From Graham to Buffett and Beyond and it raised a very interesting point that growth may not even be necessarily beneficial for shareholders. Excerpts from the  book Earnings Power Value The traditional Graham and Dodd earnings assumptions are (1) that current earnings, properly adjusted, correspond to sustainable levels of cash flow and (2) that this earnings level remains constant for the indefinite future. Under these assumptions, the equation for the earnings power value (EPV) of a company is EPV = Adjusted Earnings x 1/R where R is the current cost of capital......