What is Graham Number Calculator?
The Graham Number Calculator is a tool designed to help investors calculate the Graham Number. It helps evaluate whether a stock is undervalued or overvalued by using a formula based on earnings per share (EPS) and book value per share (BVPS). The calculator provides a quick valuation tool for stock analysis.
Enter the required values to calculate the Graham Number:
What is the Graham Number Calculator?
The Graham Number Calculator allows investors to calculate the Graham Number, a valuation metric introduced by Benjamin Graham. It uses the company's earnings per share (EPS) and book value per share (BVPS) to determine if a stock is undervalued. The calculator helps investors make more informed decisions by providing an objective measure of stock value.
How to use Graham Number Calculator?
To use the Graham Number Calculator, simply enter the company's earnings per share (EPS) and book value per share (BVPS) in the respective fields and click on the "Calculate" button. The calculator will provide the Graham Number, which is a suggested value for a stock.
What is the formula of Graham Number Calculator?
The formula for the Graham Number is:
Graham Number = √(22.5 × EPS × BVPS)
Advantages and Disadvantages of Graham Number Calculator
Advantages:
- Helps in valuing stocks quickly.
- Based on a well-established valuation formula by Benjamin Graham.
- Can assist in identifying undervalued stocks.
Disadvantages:
- Does not take into account the growth rate of a company.
- May not be accurate for companies in growth phases.
- Does not consider market conditions or external factors.