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Graham Number Fair Value from EPS and Book Value Calculator

Fair value = √(22.5 · EPS · BV/share).

Compute Benjamin Graham's quick fair-value estimate for a defensive (conservative) investor: Fair value per share = √(22.5 · EPS · book-value-per-share). 22.5 reflects Graham's rule of P/E ≤ 15 and P/B ≤ 1.5 (15 × 1.5 = 22.5). Stocks trading well below this are statistically cheap; well above suggests overvaluation.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

Graham number = √(22.5 · EPS · BV).

In depth

Compute Benjamin Graham's quick fair-value estimate for a defensive (conservative) investor: Fair value per share = √(22.5 · EPS · book-value-per-share). 22.5 reflects Graham's rule of P/E ≤ 15 and P/B ≤ 1.5 (15 × 1.5 = 22.5). Stocks trading well below this are statistically cheap; well above suggests overvaluation.