Graham number
Benjamin Graham's rough fair-value ceiling for a defensive investor, blending trailing earnings and book value into a single per-share figure. A price below it is a starting point for further work, not a buy signal on its own. Not-meaningful when trailing EPS or book value per share is zero or negative.
Formula
√(22.5 × TTM EPS × book value per share)
Related terms
Metrics on this page are computed by Moatkeep from reported filings and market data and are estimates: they depend on modelling choices (e.g. period alignment, share counts, currency) and on the underlying data being correct. Definitions are in the glossary. Figures are not investment advice — see the full disclaimer.