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Graham numberAnalyst

Benjamin Graham’s upper price limit for a defensive investor.

What you’ll enter

  • Earnings per share
  • Book value per share
  • Current share price (optional)

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The formula

Graham number = √(22.5 × EPS × BVPS)

22.5 comes from Graham’s limits of a P/E of 15 and a price-to-book of 1.5. It suits asset-heavy, profitable companies, not fast growers.