Graham Number Calculator
Graham Number (Maximum Price)
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Methodology
Created by Benjamin Graham (the father of value investing), this number represents the absolute maximum price a defensive investor should pay for a stock.
Graham believed that a P/E ratio should not be over 15x, and a P/B ratio should not be over 1.5x. (15 × 1.5 = 22.5).
Therefore, a stock priced below its Graham Number is theoretically undervalued according to classical value investing principles.