Fundamental Analysis

Graham Number Calculator

Estimate Graham Number from EPS and book value per share using the classic formula.

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Results

Results are educational estimates based only on the values you enter.

Educational-only calculator: This tool is not financial, investment, trading, tax, legal, retirement, religious, or professional advice. It does not know your personal situation, broker rules, regional laws, product terms, taxes, or risk tolerance.
Who, what, where, when, why, how

How to use this tool correctly

Who it helps

Value-investing learners studying classic Benjamin Graham valuation concepts.

What it calculates

The Graham Number is a simplified valuation formula using earnings per share and book value per share.

Where it is used

Use it for education on traditional value-investing metrics, not as a buy/sell signal.

When to use it

Use it after verifying EPS and book value quality.

Why it matters

The formula demonstrates a conservative valuation framework, but modern companies and industries may not fit it well.

How to use it

Enter EPS and book value per share.

Common mistakes to avoid

  • Using the formula as a stock recommendation.
  • Applying it blindly to growth, financial, or intangible-heavy companies.
  • Ignoring debt, earnings quality, and business risk.
  • Using stale accounting data.

How to interpret the answer

Use the Graham Number Calculator result as an educational checkpoint, not as a final decision. Start by checking the inputs that drive this estimate: Earnings per share ($), Book value per share ($). Then change one assumption at a time so you can see whether the graham number result is stable or highly sensitive. This page uses the graham calc model in a simplified browser calculator, so it cannot see your broker terms, account type, local rules, fees, taxes, currency conversion, or personal risk limits. Graham Number = sqrt(22.5 x EPS x BVPS). It represents the upper bound of a fair price for a defensive investor. Stock below this number may offer a margin of safety. For any real trade, investment, tax, retirement, or religious-compliance decision, compare the result with official documents and qualified guidance.

Result guidance

Graham Number Calculator research checklist

Check the key inputs

For Graham Number Calculator, start with Earnings per share, Book value per share and review whether each value came from a current source. Because this is a fundamental analysis calculator, also check statement quality, sector comparison, and assumptions behind the input numbers. Keep a note of which input you changed and why, so the estimate can be recreated later.

Compare realistic scenarios

Build three graham number scenarios: test a conservative valuation case, a base case, and a stronger-growth case. Keep the same units and currency in each run, then compare the result direction rather than treating one output as a final decision.

Verify model limits

This page uses a simplified graham calc model. It can show the arithmetic, but it does not fully capture business quality, debt maturity timing, accounting adjustments, dilution, and sector cycles. Confirm anything important against company filings, annual reports, and independent financial statements before relying on the number.

Educational use: Graham Number = sqrt(22.5 x EPS x BVPS). It represents the upper bound of a fair price for a defensive investor. Stock below this number may offer a margin of safety. Use Graham Number Calculator as a learning and research aid: document assumptions, compare scenarios, and verify important inputs with official or professional sources.
FAQ

Questions about Graham Number

What does Graham Number Calculator help me understand?

Graham Number Calculator helps you benjamin Graham's formula for maximum fair value of a stock. It turns fundamental analysis inputs into a visible estimate so you can inspect the mechanics instead of relying on a mental shortcut. The answer is best used as an educational checkpoint, not as a recommendation to buy, sell, trade, borrow, invest, file taxes, or choose an account.

Which inputs should I check first in Graham Number Calculator?

Start with Earnings per share, Book value per share. For this fundamental analysis tool, also review statement quality, sector comparison, and assumptions behind the input numbers. If one field is estimated, mark it clearly in your notes and rerun the calculator with a lower and higher value to see how sensitive the result is.

Why can Graham Number Calculator differ from a real-world outcome?

The calculator uses a simplified graham calc model. Real outcomes may be affected by business quality, debt maturity timing, accounting adjustments, dilution, and sector cycles. Where the result affects money, tax, retirement, trading risk, religious-compliance review, or account selection, compare the output with company filings, annual reports, and independent financial statements.

How should I use the Graham Number result in research?

Treat the result as one structured note. Record the date, the inputs, the source of each assumption, and what changed between scenarios. For graham number, a useful next step is to read the related guide or official reference, then rerun the calculation after updating any stale value.

Before you rely on this number

The Graham Number Calculator is most useful when you treat it as a transparent worksheet. Save the assumptions that produced the result, especially Earnings per share ($), Book value per share ($), and rerun the calculator after changing one assumption at a time. If the graham number estimate changes sharply, the situation deserves deeper review before you compare products, brokers, securities, accounts, or strategies.

For source checking after using the Graham Number Calculator, compare the Earnings per share ($), Book value per share ($) assumptions with records that match this fundamental analysis topic: statements, broker fee schedules, exchange or contract specifications, fund documents, tax authority guidance, account contribution records, or religious-compliance references where relevant. CommerciumIQ tools support education and research notes; they are not a substitute for official records or qualified professional advice.

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