# Graham Number 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.