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Alignment HealthcareALHC -20.20%79 Graham Number is $2.17 as of Jun. 2026, which is 82% below its 10-year median of 12.32. GuruFocus rates ALHC with a GF Score™ of 79/100 and a GF Value™ of $20.32 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 12 Healthcare Plans companies, Alignment Healthcare ranks worse than 100% on this metric.
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.
As of today (2026-08-02), the stock price of Alignment Healthcare is $14.84. Alignment Healthcare's graham number for the quarter that ended in Jun. 2026 was $2.17. Therefore, Alignment Healthcare's Price to Graham Number ratio for today is 6.83.
The historical rank and industry rank for Alignment Healthcare's Graham Number or its related term are showing as below:
ALHC'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 6.84 Med: 12.32 Max: 13.66
Current: 6.84
During the past 7 years, the highest Price to Graham Number ratio of Alignment Healthcare was 13.66. The lowest was 6.84. And the median was 12.32.
ALHC's Price-to-Graham-Number is ranked worse than 100% of 12
companies
in the Healthcare Plans industry
Industry Median: 2.8
vs ALHC: 6.84
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Alignment Healthcare (NAS:ALHC) 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.
Alignment Healthcare's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
14.84
/
2.17
=
6.83
* 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.
Alignment Healthcare Graham Number Related Terms
Alignment Healthcare Graham Number Historical Data
* Premium members only.
The historical data trend for Alignment Healthcare's Graham Number can be seen below:
* 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.
ALHC vs PGNY, CLOV, PFHO: Graham Number Comparison
For the Healthcare Plans subindustry, Alignment Healthcare'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.
Alignment Healthcare Price-to-Graham-Number vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Alignment Healthcare's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Alignment Healthcare'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.
Alignment Healthcare (ALHC) has a Graham Number of $2.17 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Alignment Healthcare and its competitors. This is 82% below median its historical median of 12.32. Over the past decade, Alignment Healthcare's Graham Number has ranged from 6.84 to 13.66. According to the industry distribution chart, Alignment Healthcare ranks #12 out of 12 companies in the Healthcare Plans industry.
Is Alignment Healthcare's Graham Number too high?
Alignment Healthcare's current Graham Number of $2.17 is 82% below median its 10-year median of 12.32. Over the past 10 years, this metric has ranged from a low of 6.84 to a high of 13.66. The Healthcare Plans industry median Graham Number is 2.80. Alignment Healthcare's value of $2.17 is 22.5% below this industry median. Based on the distribution chart, Alignment Healthcare ranks #12 out of 12 companies in the Healthcare Plans industry, which is in the bottom quartile relative to peers. Overall, Alignment Healthcare has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alignment Healthcare's Graham Number compare to PGNY and CLOV?
According to the Healthcare Plans industry distribution chart, Alignment Healthcare ranks #12 out of 12 companies for Graham Number. This places Alignment Healthcare in the lower half of its industry. The industry median Graham Number is 2.80. Alignment Healthcare's value of $2.17 is 22.5% below this benchmark. Historically, Alignment Healthcare's own Graham Number has ranged from 6.84 to 13.66 over the past decade. While the company's 10-year median is 12.32 vs. the industry median of 2.80, Alignment Healthcare has consistently been below the industry average. 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 Healthcare Plans company?
The median Graham Number among Healthcare Plans companies is 2.80, based on 12 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. Alignment Healthcare's current Graham Number of $2.17 is 22.5% below 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 Alignment Healthcare and its competitors. For the Healthcare Plans industry, the median Graham Number is 2.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alignment Healthcare's current Graham Number is $2.17, which is 82% below median its own 10-year median of 12.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alignment Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Alignment Healthcare (ALHC) is currently considered Modestly Undervalued. The stock's GF Value™ is $20.32, compared to a current price of $14.84 — trading 27% below its estimated fair value. The current Graham Number is $2.17, which is 82% below median its 10-year median of 12.32 and 22.5% below the Healthcare Plans industry median of 2.80. Alignment Healthcare's overall GF Score™ is 79/100 with 2 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 Alignment Healthcare (ALHC), the current Graham Number is $2.17 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 Alignment Healthcare (ALHC) Overvalued in 2026?
Based on GuruFocus' analysis, Alignment Healthcare stock appears to be undervalued.
The current stock price of $14.84 is trading 27% below its estimated GF Value™ of $20.32.
GuruFocus considers Alignment Healthcare to be Modestly Undervalued.
Key valuation signals for ALHC:
Graham Number: $2.17 (82% below median its 10-year median of 12.32)
GF Value™: $20.32 vs. price of $14.84 (27% below fair value)
Industry Position: 22.5% below the Healthcare Plans median (#12 of 12)
No single metric tells the full story. See the ALHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alignment Healthcare Inc is a next-generation, consumer-centric platform that is revolutionizing the healthcare experience for seniors through Medicare Advantage plans. These plans are marketed and sold direct-to-consumer, allowing seniors to select the manner in which customers receive healthcare coverage and services on an annual basis. The company combines a technology platform and clinical model for more effective health outcomes.
79GF Score
Get the complete analysis for ALHC
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