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Graham Number Calculator

Find the maximum fair price a defensive investor should pay, from earnings and book value.

Defensive Price Ceiling

The most a value investor should pay per share

√(22.5 × EPS × BVPS)

Graham's P/E ≤ 15 and P/B ≤ 1.5 rules combined

Instant Verdict

See if the current price passes the screen

Graham Number
The maximum price a defensive investor should pay, from earnings and book value per share.
£
£

From the book value per share calculator.

£

Add to get a verdict.

What the Graham Number Tells You

The Logic

Graham wanted a margin of safety in both earnings and assets. By capping the P/E at 15 and price-to-book at 1.5 and combining them (15 × 1.5 = 22.5), the formula refuses to let you overpay on either measure. The square root returns a per-share price.

Best For Tangible Businesses

Because it leans on book value, the Graham Number suits asset-heavy, profitable companies (industrials, banks, utilities) and badly understates asset-light businesses like software. Use it as a screen, then dig deeper with a DCF.

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ARIA screens, values, and risk-manages your whole portfolio — so a single-stock check like the Graham Number becomes part of a disciplined, repeatable process.

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Related Free Tools

Book Value Per Share Calculator
Get the BVPS input the Graham Number needs.
Intrinsic Value Calculator
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Margin of Safety Calculator
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DCF Calculator
Value a company from its discounted cash flows.
ROI Calculator
Measure return on investment and annualised growth.
Dividend Calculator
Project dividend income and reinvestment growth.

Frequently Asked Questions