Calculate Benjamin Graham's 'intrinsic value' for a stock based on earnings and book value.
Stock Financials
Valuation Result
Graham Number$67.08The defensive ceiling price
Margin of Safety-44.1%Potential Overvaluation
Price vs. Graham Value
About this calculator
Overview
The Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share (EPS) and book value per share (BVPS).
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Pro Tips
The multiplier 22.5 is based on Graham's recommendation: P/E ratio ≤ 15 and P/B ratio ≤ 1.5 (15 * 1.5 = 22.5).
A stock is typically considered undervalued if its current price is below the Graham Number.
This formula is best suited for stable companies with consistent earnings and tangible assets.
Defensive investors use this to establish a point of entry with a built-in margin of safety.
