Compute the maximum price a defensive investor might pay for a stock.
Please do not make financial decisions based on these results.
What is the Graham Number Calculator?
Compute the maximum price a defensive investor might pay for a stock. To use the Graham Number Calculator, enter earnings per share, book value per share, current price; it returns graham number, margin vs current price, and shows them instantly as you type.
Where the Graham Number Calculator fits
Compute the maximum price a defensive investor might pay for a stock. The main figure it returns is the Graham number, worked out from the values you enter.
It belongs with the other stocks & equity analysis tools. If you are comparing options or checking a result from another angle, try the Stock Calculator, Stock Split Calculator or the Cost of Equity Calculator.
How to use the Graham Number Calculator
- Fill in the fields. You will need Earnings per share ($), Book value per share ($), Current price ($). Take price and share figures from the latest filing or quote. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Graham number, and the cards below show Margin vs current price. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Graham Number Calculator using the default values shown in the calculator above:
Inputs
| Earnings per share ($) | 4.2 |
|---|---|
| Book value per share ($) | 28 |
| Current price ($) | 52 |
Results
| Graham number | $51.44 |
|---|---|
| Margin vs current price | -1.08% |
With these inputs the calculator returns Graham number: $51.44. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Earnings per share ($) from 4.2 to 5.04 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Graham number | $51.44 | $56.35 | +9.5% |
| Margin vs current price | -1.08% | 8.36% | +875.6% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Graham Number Calculator reports Graham number and margin vs current price. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is the Graham number?
Benjamin Graham’s rule-of-thumb ceiling price based on earnings and book value.
Which valuation ratio should I trust?
No single ratio is enough. Compare several multiples with the company’s own history and its industry peers.
Is a high dividend yield good?
Not automatically. A very high yield can signal a falling price or a dividend that may be cut.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related stocks & equity analysis calculators
- Stock Calculator
- Stock Split Calculator
- Cost of Equity Calculator
- Dividend Calculator
- Earnings per Share Calculator
- EBITDA Multiple Calculator
- Enterprise Value Calculator
- Free Float Calculator
- Market Capitalization Calculator
- Maturity Value Calculator
- NAV Calculator — Net Asset Value
- Beta Stock Calculator
All Stocks & Equity Analysis calculators →