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Graham Number Calculator.

Calculate the Graham number from EPS and book value per share.

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Graham number: $67.08

Graham number

$67.08

FAQs

How does the graham number calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

Cite this calculator

Canonical URL: https://mathify.one/de/finance/graham-number

Cite as: Mathify. (2026). Rechner: Graham Number. https://mathify.one/de/finance/graham-number

Use Cases

Value stock screening

Quickly assess whether a stock is undervalued relative to its earnings and book value, helping you identify potential value investments.

Example: If a stock has EPS of $4 and book value per share of $20, the Graham number is sqrt(22.5*4*20) = $42.43.

Investment research

Use the Graham number as a starting point for deeper fundamental analysis, comparing it to the current market price to gauge margin of safety.

Example: Compare the calculated Graham number to the stock's current price to see if it trades below its estimated fair value.

Frequently Asked Questions

What is the Graham number?
The Graham number is a formula developed by Benjamin Graham to estimate the fair value of a stock. It is calculated as the square root of (22.5 × EPS × book value per share). It assumes a P/E ratio of 15 and a price-to-book ratio of 1.5.
How do I use the Graham Number Calculator?
Enter the earnings per share (EPS) and book value per share of a company. The calculator will compute the Graham number, which represents a rough upper limit of what a defensive investor should pay for the stock.
Is the Graham number a guarantee of a stock's value?
No, it is a heuristic, not a precise valuation. It works best for companies with positive earnings and book value. It does not account for growth, debt, or industry differences. Use it as a screening tool, not as the sole basis for investment decisions.

Tips & Common Mistakes

Tips

  • Use the most recent annual EPS and book value per share from the company's financial statements for accuracy.
  • The Graham number is most meaningful for companies with stable earnings and tangible assets; avoid using it for high-growth or asset-light firms.
  • Remember that the Graham number is a conservative estimate; many investors require a margin of safety below this number before buying.
  • For a more comprehensive valuation, combine the Graham number with other metrics like P/E ratio, P/B ratio, and cash flow analysis.

Common Mistakes to Avoid

  • Using negative EPS or book value per share, which will result in an invalid or imaginary Graham number.
  • Using diluted EPS instead of basic EPS without understanding the difference; be consistent with the data source.
  • Treating the Graham number as an exact fair value rather than a rough estimate, leading to overconfidence in investment decisions.

Last updated: August 13, 2026