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Graham Number Calculator

Calculate the Benjamin Graham fair value ceiling, P/E * P/B product multiple, and defensive margin of safety.

Quick Definition & Answer

What is the Graham Number Calculator?

The ToolboxDock Graham Number Calculator is a free, 100% browser-based financial utility that calculates money metrics directly in client-side RAM with zero server transfers. It provides instant mathematical modeling for loans, investments, taxes, and amortization schedules while ensuring complete confidentiality of your sensitive financial data.

The Graham Number is a classic value investing formula developed by Benjamin Graham (the father of value investing and Warren Buffett's mentor) that defines the upper price limit a defensive investor should pay for a stock based on earnings and tangible book value.

Financial Calculation Inputs

  • Supported Inputs: Principal balances, interest rates, compounding schedules, and tenures.
  • Precision Model: High-precision IEEE-754 floating-point arithmetic with decimal rounding.
  • Data Privacy: Zero cloud logs. Figures are calculated locally in your browser memory.

Output & Schedule Breakdown

  • Visual Analytics: Month-by-month schedules, dynamic charts, and cash flow summaries.
  • Currency Support: Multi-currency symbol formatting (USD, EUR, GBP, INR, JPY, CAD, AUD).
  • Access Guarantee: 100% unlocked with zero limits, subscriptions, or forced account creation.

How to Use the Graham Number Calculator

Follow these 3 simple steps for instant, accurate calculations.

1. Input Diluted Earnings Per Share (EPS)

Enter the trailing twelve months (TTM) normalized Earnings Per Share (e.g. $4.50).

2. Input Book Value Per Share (BVPS)

Enter the common equity Book Value Per Share from the latest corporate balance sheet (e.g. $32.00).

3. Evaluate Graham Number & Buy Ceiling

Review calculated Graham Number ceiling price, compare against current stock price, and assess undervaluation discount.

Financial Privacy & Architecture Comparison

Why client-side financial calculations protect your privacy better than cloud services.

Evaluation CriteriaToolboxDock (Client-Side)Traditional Online Calculators
Financial Data Privacy100% Local (Never leaves device RAM)Logged on remote servers and ad networks
Calculation LatencyInstant real-time update on keystrokeFull page reloads or API round-trips
Offline UsabilityWorks offline once cached in browserFails without active server connection
Cost & Paywalls100% free with unlimited calculationsUsage caps or financial product paywalls

Benjamin Graham Number Formula

Graham Number=22.5×EPS×BVPS=15×1.5×EPS×BVPS\text{Graham Number} = \sqrt{22.5 \times \text{EPS} \times \text{BVPS}} = \sqrt{15 \times 1.5 \times \text{EPS} \times \text{BVPS}}

Calculates the upper boundary price for a defensive stock where Price-to-Earnings <= 15 and Price-to-Book <= 1.5.

Variable Legend & Definitions
Graham Number\text{Graham Number}Maximum Defensive Purchase Price ($)
22.522.5Graham Constant (Max P/E of 15.0 × Max P/B of 1.5)
EPS\text{EPS}Trailing Diluted Earnings Per Share ($)
BVPS\text{BVPS}Book Value Per Share (Shareholders' Equity / Shares) ($)

Core Graham Number Calculator Inputs & Terminology

Graham Number

The theoretical maximum fair value purchase price for a conservative value stock, calculated as sqrt(22.5 × EPS × BVPS).

Book Value Per Share (BVPS)

Total common shareholders' equity divided by total shares outstanding, representing net accounting asset value.

22.5 Multiplier

The product of Graham's maximum conservative P/E threshold (15.0) and maximum P/B threshold (1.5): 15.0 × 1.5 = 22.5.

Defensive Investor

Graham's term for a conservative investor seeking long-term capital preservation with minimum risk.

Frequently Asked Questions

Common questions about using our free Graham Number Calculator.

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