Speedy Calculator

Graham Number Calculator

Finance Updated October 25, 2026

Quick answer

The Graham number calculator estimates the maximum fair price for a defensive stock using Benjamin Graham's formula – the square root of 22.5 times EPS times book value per share – and tells you if the stock looks underpriced.

$
$
$
Graham number
$ —
Price vs Graham number
— %
Verdict
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Benjamin Graham, Warren Buffett’s mentor, suggested a defensive investor should pay no more than 15 times earnings and 1.5 times book value. The Graham number combines both limits. It doesn’t work for loss-making companies or those with negative book value.

How to use the Graham Number Calculator

  1. Earnings per share (TTM)
  2. Book value per share
  3. Current share price

Results update as you type, and every field accepts the units shown in its menu.

How it works

Enter EPS and book value per share (or the totals to derive them), and the current share price.

Tips

  • Take figures from the same financial statements and the same fiscal year.
  • Compare ratios with companies in the same industry, not across industries.
  • Use several valuation measures together; no single ratio tells the whole story.
  • Market prices change every second – refresh the share price before you rely on a result.

Common mistakes to avoid

  • Mixing per-share figures with company totals.
  • Using trailing earnings for one company and forward earnings for another.
  • Forgetting dilution from options and convertible securities.

Inputs explained

Field What to enter
Earnings per share (TTM) Amount in your currency
Book value per share Amount in your currency
Current share price Amount in your currency

Example values

How the main result changes when Earnings per share changes and everything else stays at the example values above:

Earnings per share (TTM) Graham number
2.25 38.97
3.38 47.73
4.5 55.11
5.63 61.62
6.75 67.5
9 77.94

Formula

Graham number = √(22.5 × EPS × book value per share)22.5 = maximum P/E of 15 × maximum P/B of 1.5

Worked example

Inputs — Earnings per share (TTM): $4.5; Book value per share: $30; Current share price: $52.
Results — Graham number = $55.11; Price vs Graham number = -5.65 %; Verdict = Underpriced by Graham's test.

Frequently asked questions

What is the Graham number?

√(22.5 × EPS × BVPS), a ceiling on a defensive stock's fair price.

Where does 22.5 come from?

15 (max P/E) × 1.5 (max P/B).

Does it work for growth stocks?

Not well – it ignores growth, so most tech stocks look overpriced.

What formula does the Graham Number Calculator use?

Graham number = √(22.5 × EPS × book value per share).

Cite this calculator

Speedy Calculator. (2026). Graham Number Calculator. Speedy Calculator. https://speedycalculator.com/calculators/finance/graham-number/