Finance

Graham Number Calculator

Find the maximum price a defensive investor should pay for a stock using Benjamin Graham's formula.

Earnings Per Share (EPS) ($)

Book Value Per Share (BVPS) ($)

Current Stock Price ($)

Formula:
Graham Number = √(22.5 × EPS × BVPS)
22.5 = 15 (max P/E) × 1.5 (max P/B)
Buy if Price ≤ Graham Number

Benjamin Graham's Value Investing

The Graham Number sets the maximum price a defensive investor should pay. Graham believed a stock should have a P/E below 15 and P/B below 1.5 simultaneously. The formula combines both criteria into a single number.