Graham Number Calculator
Estimate a conservative fair value using earnings per share and book value per share.
The calculator also shows an optional margin-of-safety price target.
Graham Number Result
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Run the calculation to see the estimate.
Quick Answer
The Graham Number uses the square root of 22.5 times EPS times book value per share. It is a conservative estimate of fair value for value investing.
How to Calculate Graham Number
- Enter EPS and book value per share.
- Optionally set a margin of safety.
- Click Calculate.
- Use the result as a rough upper valuation bound.
Formula
Graham Number = sqrt(22.5 x EPS x book value per share)
Margin of safety price = Graham Number x (1 - margin of safety / 100)
Worked Examples
Example 1: EPS of 4 and book value of 12 gives a Graham Number of about 32.86.
Example 2: Adding a 25 percent margin of safety reduces the suggested purchase price.
Example 3: Higher EPS or book value raises the estimate, but the formula stays conservative.
How to Interpret Your Results
| Result | Meaning | Action |
|---|---|---|
| Low Graham Number | The stock may not screen as cheap by this rule | Check growth quality and balance sheet strength |
| Moderate Graham Number | The stock may be fairly valued | Compare with other value metrics |
| High Graham Number | The stock may screen as undervalued | Review whether the inputs are sustainable |
Frequently Asked Questions
Related Calculators
Detail About Graham Number Calculator
This page gives a classic value-investing screening estimate and a discounted purchase target if you want a margin of safety.
References
- OmniCalculator reference page
- Benjamin Graham's formula is a value-investing classic.
- Last reviewed: March 2026.