The Graham number or Benjamin Graham number is a figure used in securities investing that measures a stock 's so-called fair value. Named after Benjamin Graham , the founder of value investing , the Graham number can be calculated as follows:
19-532: (Redirected from Grahams ) [REDACTED] Look up graham , Graham , or Graeme in Wiktionary, the free dictionary. Graham or Graeme may refer to: People [ edit ] Graham (given name) , an English-language given name Graham (surname) , an English-language surname Graeme (surname) , an English-language surname Graham (musician) (born 1979), Burmese singer Clan Graham ,
38-401: A r e h o l d e r s ′ e q u i t y shares outstanding ) {\displaystyle {\sqrt {15\times 1.5\times \left({\frac {\text{net income}}{\text{shares outstanding}}}\right)\times \left({\frac {\mathrm {shareholders'\ equity} }{\text{shares outstanding}}}\right)}}} This finance-related article is
57-553: A Scottish clan George Graham (clockmaker) , an English clockmaker, inventor, and geophysicist Graham baronets Fictional characters [ edit ] Graham Aker , in the anime Gundam 00 Project Graham , what a human would look like to survive a car crash Graham, the head of the royal family of Daventry in the King's Quest series of video games Places [ edit ] Canada [ edit ] Graham, Sudbury District , Ontario Graham Island , part of
76-504: A Scottish clan George Graham (clockmaker) , an English clockmaker, inventor, and geophysicist Graham baronets Fictional characters [ edit ] Graham Aker , in the anime Gundam 00 Project Graham , what a human would look like to survive a car crash Graham, the head of the royal family of Daventry in the King's Quest series of video games Places [ edit ] Canada [ edit ] Graham, Sudbury District , Ontario Graham Island , part of
95-967: A producer of port wine Graham's number , the largest number that has ever been seriously used in a mathematical proof Graham scan , a method of computing a convex hull Graham and Graham-Paige , automobile makers in Detroit, USA, between 1928 and 1940 Graham technique , a modern dance style See also [ edit ] [REDACTED] Search for "Graham" , "grahams" , "graeme" , or "graemes" on Misplaced Pages. All pages with titles beginning with Graham All pages with titles beginning with Graeme Gram Gramm (disambiguation) Graham County (disambiguation) Graham Township (disambiguation) Graham Hill (disambiguation) , including Graham's Hill Graham Hills (disambiguation) Mount Graham (disambiguation) , including Graham Mountain Topics referred to by
114-861: A producer of port wine Graham's number , the largest number that has ever been seriously used in a mathematical proof Graham scan , a method of computing a convex hull Graham and Graham-Paige , automobile makers in Detroit, USA, between 1928 and 1940 Graham technique , a modern dance style See also [ edit ] [REDACTED] Search for "Graham" , "grahams" , "graeme" , or "graemes" on Misplaced Pages. All pages with titles beginning with Graham All pages with titles beginning with Graeme Gram Gramm (disambiguation) Graham County (disambiguation) Graham Township (disambiguation) Graham Hill (disambiguation) , including Graham's Hill Graham Hills (disambiguation) Mount Graham (disambiguation) , including Graham Mountain Topics referred to by
133-573: A submerged volcanic island in the Mediterranean Sea Transport [ edit ] Graham Street light rail station , Melbourne, Australia (previously named Graham) Other uses [ edit ] List of Grahams (mountains) , a class of mountain in Scotland between 2,000–2,500 feet (609.6–762.0 m) in height and a prominence of 492.1 feet (150 m) or more. Graham (satellite) , NASA satellite Graham flour ,
152-436: A submerged volcanic island in the Mediterranean Sea Transport [ edit ] Graham Street light rail station , Melbourne, Australia (previously named Graham) Other uses [ edit ] List of Grahams (mountains) , a class of mountain in Scotland between 2,000–2,500 feet (609.6–762.0 m) in height and a prominence of 492.1 feet (150 m) or more. Graham (satellite) , NASA satellite Graham flour ,
171-499: A type of flour similar to whole wheat flour Graham cracker , a baked good made from Graham flour Graham factors, factors for determining ambiguity in U.S. patent law (see Inventive step and non-obviousness or Graham v. John Deere Co. ) Graham (mango) , a named mango cultivar originating in Trinidad. Graham number , a figure used in value investing Graham escapement , a type of clockwork escapement Graham's ,
190-443: A type of flour similar to whole wheat flour Graham cracker , a baked good made from Graham flour Graham factors, factors for determining ambiguity in U.S. patent law (see Inventive step and non-obviousness or Graham v. John Deere Co. ) Graham (mango) , a named mango cultivar originating in Trinidad. Graham number , a figure used in value investing Graham escapement , a type of clockwork escapement Graham's ,
209-499: Is calculated by dividing net income by shares outstanding . Book value is another way of saying shareholders' equity . Therefore, book value per share is calculated by dividing equity by shares outstanding . Consequently, the formula for the Graham number can also be written as follows: 15 × 1.5 × ( net income shares outstanding ) × ( s h
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#1732772095206228-559: Is different from Wikidata All article disambiguation pages All disambiguation pages graham [REDACTED] Look up graham , Graham , or Graeme in Wiktionary, the free dictionary. Graham or Graeme may refer to: People [ edit ] Graham (given name) , an English-language given name Graham (surname) , an English-language surname Graeme (surname) , an English-language surname Graham (musician) (born 1979), Burmese singer Clan Graham ,
247-404: Is different from Wikidata All article disambiguation pages All disambiguation pages Graham number 22.5 × ( earnings per share ) × ( book value per share ) {\displaystyle {\sqrt {22.5\times ({\text{earnings per share}})\times ({\text{book value per share}})}}} The final number is, theoretically,
266-705: The Charlotte Island group in British Columbia Graham Island (Nunavut) , Arctic island in Nunavut United States [ edit ] Graham, Alabama Graham, Arizona Graham, Florida Graham, Georgia Graham, Kentucky Graham, Missouri Graham, North Carolina Graham, Oklahoma Graham, Texas Graham, Washington Elsewhere [ edit ] Graham Land , Antarctica Graham Island (Mediterranean Sea) , British name for
285-480: The Charlotte Island group in British Columbia Graham Island (Nunavut) , Arctic island in Nunavut United States [ edit ] Graham, Alabama Graham, Arizona Graham, Florida Graham, Georgia Graham, Kentucky Graham, Missouri Graham, North Carolina Graham, Oklahoma Graham, Texas Graham, Washington Elsewhere [ edit ] Graham Land , Antarctica Graham Island (Mediterranean Sea) , British name for
304-460: The book value last reported. However a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1 1 ⁄ 2 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.) Earnings per share
323-475: The maximum price that a defensive investor should pay for the given stock. Put another way, a stock priced below the Graham Number would be considered a good value, if it also meets a number of other criteria. The Number represents the geometric mean of the maximum that one would pay based on earnings and based on book value. Graham writes: Current price should not be more than 1 1 ⁄ 2 times
342-448: The same term [REDACTED] This disambiguation page lists articles associated with the title Graham . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Graham&oldid=1259620038 " Categories : Disambiguation pages Place name disambiguation pages Hidden categories: Short description
361-448: The same term [REDACTED] This disambiguation page lists articles associated with the title Graham . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Graham&oldid=1259620038 " Categories : Disambiguation pages Place name disambiguation pages Hidden categories: Short description
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