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Graham Number Calculator

LAST UPDATE: September 1st, 2018

Calculator

What is the Graham Number?

The Graham Number is considered by some investors as the upper limit for what an investor should pay for a stock.

Formula

\text{Graham Number} = \sqrt(2){22.5 \times \text{Earnings per Share} \times \text{Book Value per Share}}

Example

A stock has earnings per share of $2.50 and a book value per share of $17.92.

\text{Graham Number} = \sqrt(2){22.5 \times 2.50 \times 17.92}

\text{Graham Number} = \sqrt(2){1008}

\text{Graham Number} = 31.75

Therefore, this stock’s Graham Number is 31.75.

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