Graham Number
Shows a rough ceiling on what a defensive investor might pay per share, based on the company’s earnings and book value per share.
How it is calculated
(22.5 × EPS (Basic) (TTM) × (Common Equity (Total) (latest quarter) ÷ Shares (Basic, Weighted) (latest quarter))) ^ 0.5
Quarterly and annual values are the daily value on the first trading day on or after each period end.
22.5 is Benjamin Graham’s ceiling of a price-to-earnings ratio of 15 times a price-to-book ratio of 1.5; raising to the power 0.5 takes the square root.
- Unit
- Ratio
- Periods
- Daily, Quarterly, Annual
- Source
- Calculated by stockrow from the inputs below
- Made from
- EPS (Basic), Common Equity (Total), Shares (Basic, Weighted)