
The Graham Number, Explained: The Maximum Price Benjamin Graham Would Pay for a Stock
The Graham Number — the square root of 22.5 × EPS × BVPS — caps what a defensive investor pays: below it, research the stock; above it, pass.
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The Graham Number — the square root of 22.5 × EPS × BVPS — caps what a defensive investor pays: below it, research the stock; above it, pass.

PEG ratio divides P/E by earnings growth — around 1.0 is fairly valued, below 1.0 may be cheap if the growth is real.

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