Graham Number Calculator
The Graham Number is Benjamin Graham's defensive ceiling on what a conservative investor should pay for a stock. Enter EPS and book value per share, or prefill them from a ticker.
Enter a positive EPS and book value per share. The Graham Number is undefined for a company with no earnings or negative equity — which is itself a warning, explained in the full article.
The formula
Graham Number = √(22.5 × EPS × book value per share). The 22.5 comes from Graham's two ceilings: a price-to-earnings of 15 and a price-to-book of 1.5 (15 × 1.5 = 22.5). A stock trading below the result sits inside his defensive range; above it, the margin of safety is gone.
A worked example
With EPS of 4 and book value per share of 20: √(22.5 × 4 × 20) = √1,800 ≈ 42.43. At a price of 60, the stock trades about 41% above its Graham Number — outside the defensive range.
Where it stops working
The formula is undefined for a company with negative earnings or negative equity, and it flatters asset-light businesses whose worth is not on the balance sheet. It is a floor for defensive stocks, not a valuation of great ones. The full method, and its limits, are in the Graham Number article. To screen the whole market on value and quality, use the free stock screener.
For information and education, not personalized investment advice. Investing carries a risk of capital loss.