Free Tool

Graham Number Calculator

Calculate the maximum fair price for a stock using Benjamin Graham's formula from The Intelligent Investor. Enter any stock's financial data and instantly see its Graham Number and margin of safety.

Enter Stock Data
Find these values on Yahoo Finance, Morningstar, or any financial data provider under the stock's financials tab.
Trailing twelve months net income per share
Total equity divided by shares outstanding
Current stock price for margin of safety calculation
Analysis Results
Graham Number and margin of safety assessment
Enter EPS, BVPS, and market price to see your Graham Number analysis.
How the Graham Number Works
Graham Number = √(22.5 × EPS × BVPS)

Benjamin Graham, Warren Buffett's mentor and the father of value investing, created this formula to determine the maximum price a defensive investor should pay for a stock.


The constant 22.5 comes from Graham's criteria that a stock's P/E should not exceed 15 and its P/B should not exceed 1.5 (15 × 1.5 = 22.5). If the current stock price is below the Graham Number, the stock may be undervalued — the difference represents your margin of safety.


Graham taught that a margin of safety of 30% or more provides adequate protection against analytical errors and market downturns. This principle remains the cornerstone of LIUV's AI-driven analysis methodology.

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Disclaimer: This calculator is provided for educational purposes only and does not constitute financial advice. The Graham Number is one of many valuation tools and should not be used in isolation. Always conduct thorough due diligence and consult a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. LIUV does not guarantee the accuracy of user-entered data.