Graham number

Benjamin Graham's defensive-investor fair-value ceiling, derived from earnings and book value per share.

EPS — trailing 12 months ($)

Book value per share ($)

Current share price ($)

Heads-up: Graham's number assumes positive EPS and meaningful book value. It systematically under-values asset-light businesses (software, brands, networks) and over-values capital-heavy cyclicals near peak earnings.

Graham number

$47.43

vs price $80.00

Trading 68.7% above Graham's fair value — no defensive margin.

Formula

Graham number = √(22.5 × EPS × BVPS) — where 22.5 = 15 (Graham's max defensive P/E) × 1.5 (max P/B). Below the Graham number a stock satisfies both ratio caps simultaneously.

Illustrative only. Calculator outputs assume constant inputs and ignore taxes, fees, inflation, and market volatility unless stated. For research and educational purposes only — not financial advice.