Fair Market Value: GrahamValue

What Is the Graham Number?

The Graham number (or Benjamin Grahams number) measures a stocks fundamental value by taking into account the companys earnings per share (EPS) and book value per share (BVPS).

The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued and thus worth investing in.