StockYanGraham number calculator
A quick fair value check from Benjamin Graham, the father of value investing.
How to use it
- Type the EPS and book value per share.
- Add the share price to compare.
- Read the Graham number and the gap to the price.
What it measures
The Graham number is the highest price a careful value investor might pay, based on profit and net worth. A price below it may be good value. A price far above it may be costly.
FormulaGraham number = Square root of (22.5 x EPS x Book value per share)
Know its limits
It suits steady, profitable companies like banks. It does not work for loss-making companies, and it ignores growth. Use it as one check among many.
Learn more
What is WACC in NEPSE?Questions
How is the Graham number calculated?
Multiply 22.5 by EPS and by book value per share, then take the square root.
Why 22.5?
Graham wanted a PE no higher than 15 and a PB no higher than 1.5. 15 times 1.5 is 22.5.
Does StockYan screen for value stocks?
Yes. The app's Fundamental Scanner filters NEPSE stocks by EPS, PE, book value and more.
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