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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Ares Commercial Real Estate's Graham Number or its related term are showing as below:
ACRE'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.57 Med: 0.71 Max: 2.31
Current: 0.88
During the past 13 years, the highest Price to Graham Number ratio of Ares Commercial Real Estate was 2.31. The lowest was 0.57. And the median was 0.71.
ACRE's Price-to-Graham-Number is ranked worse than 65.38% of 728
companies
in the REITs industry
Industry Median: 0.73
vs ACRE: 0.88
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Ares Commercial Real Estate (NYSE:ACRE) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times 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 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Ares Commercial Real Estate's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
4.63
/
5.27
=
0.88
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Ares Commercial Real Estate Graham Number Related Terms
Ares Commercial Real Estate Graham Number Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Commercial Real Estate Price-to-Graham-Number vs REITs Industry
For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Ares Commercial Real Estate's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Commercial Real Estate (ACRE) has a Graham Number of $5.27 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Ares Commercial Real Estate and its competitors. According to the industry distribution chart, Ares Commercial Real Estate ranks #476 out of 728 companies in the REITs industry, placing it in the top 65.4%.
Is Ares Commercial Real Estate's Graham Number too high?
Ares Commercial Real Estate's current Graham Number is $5.27. The REITs industry median Graham Number is 0.73. Ares Commercial Real Estate's value of $5.27 is 621.9% above this industry median. Based on the distribution chart, Ares Commercial Real Estate ranks #476 out of 728 companies in the REITs industry, which is below the industry midpoint. Overall, Ares Commercial Real Estate has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Commercial Real Estate's Graham Number compare to REFI and RC?
According to the REITs industry distribution chart, Ares Commercial Real Estate ranks #476 out of 728 companies for Graham Number. This places Ares Commercial Real Estate in the lower half of its industry. The industry median Graham Number is 0.73. Ares Commercial Real Estate's value of $5.27 is 621.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a REITs company?
The median Graham Number among REITs companies is 0.73, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Commercial Real Estate's current Graham Number of $5.27 is 621.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Ares Commercial Real Estate and its competitors. For the REITs industry, the median Graham Number is 0.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Commercial Real Estate's current Graham Number is $5.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Commercial Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Ares Commercial Real Estate (ACRE) is currently considered Possible Value Trap. The stock's GF Value™ is $11.64, compared to a current price of $4.63 — trading 60.2% below its estimated fair value. The current Graham Number is $5.27 and 621.9% above the REITs industry median of 0.73. Ares Commercial Real Estate's overall GF Score™ is 43/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Ares Commercial Real Estate (ACRE), the current Graham Number is $5.27 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ares Commercial Real Estate (ACRE) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Commercial Real Estate stock appears to be undervalued.
The current stock price of $4.63 is trading 60.2% below its estimated GF Value™ of $11.64.
GuruFocus considers Ares Commercial Real Estate to be Possible Value Trap.
Key valuation signals for ACRE:
Graham Number: $5.27
GF Value™: $11.64 vs. price of $4.63 (60.2% below fair value)
Industry Position: 621.9% above the REITs median (#476 of 728)
No single metric tells the full story. See the ACRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Commercial Real Estate Corp is a specialty finance company and a real estate investment trust mainly engaged in originating and investing in commercial real estate (CRE) loans and related investments. It operates in one segment, namely originating and managing a diversified portfolio of CRE debt-related investments. The company recognizes the majority of its revenues in the form of interest income, which it receives from loans.
43GF Score
Get the complete analysis for ACRE
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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