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Graham Number Calculator

Work out graham number instantly with clear inputs, formula shown and shareable results.

About Graham Number Calculator

Benjamin Graham's rough ceiling for a defensive investor's price is the square root of 22.5 times earnings per share times book value per share. The 22.5 comes from his limits of 15 times earnings and 1.5 times book combined.

Formula

Graham number

Graham number = √(22.5 × EPS × BVPS)

Worked example

With the default values below, Graham Number Calculator returns Graham Number of $513.08. Change any input above and every figure here is recalculated in your browser.

Inputs used

Earnings Per Shareminimum 0
45
Book Value Per Shareminimum 0
260
Current Share Priceminimum 0
620

Results

Graham Number
$513.08
Discount To The Graham Number
-20.84%
Assessment
Trading above the Graham number
Price To Earnings At The Graham Number
11.40

Step by step

  1. 1Values used
  2. 2Graham number
  3. 3Graham Number= 513.08
  4. 4Discount To The Graham Number= -20.84
  5. 5Assessment= Trading above the Graham number
  6. 6Price To Earnings At The Graham Number= 11.40

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why 22.5?

It is 15 × 1.5 — Graham's maximum P/E multiplied by his maximum price-to-book.

Does it work for modern companies?

Poorly for asset-light and high-growth firms, since it relies on book value and trailing earnings.

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