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Armstrong World IndustriesAWI -1.64%71 Graham Number is $27.87 as of Jun. 2026, which is 334% above its 10-year median of 6.42. GuruFocus rates AWI with a GF Score™ of 71/100 and a GF Value™ of $173.75 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,219 Construction companies, Armstrong World Industries ranks worse than 95.73% 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.
The historical rank and industry rank for Armstrong World Industries's Graham Number or its related term are showing as below:
AWI'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 5.76 Med: 6.42 Max: 30.53
Current: 6.55
During the past 13 years, the highest Price to Graham Number ratio of Armstrong World Industries was 30.53. The lowest was 5.76. And the median was 6.42.
AWI's Price-to-Graham-Number is ranked worse than 95.73% of 1219
companies
in the Construction industry
Industry Median: 1.02
vs AWI: 6.55
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Armstrong World Industries (NYSE:AWI) 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.
Armstrong World Industries's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
182.48
/
27.87
=
6.55
* 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.
Armstrong World Industries Graham Number Related Terms
Armstrong World Industries 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 Building Products & Equipment subindustry, Armstrong World Industries'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.
Armstrong World Industries Price-to-Graham-Number vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries'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.
Armstrong World Industries (AWI) has a Graham Number of $27.87 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Armstrong World Industries and its competitors. This is 334% above median its historical median of 6.42. Over the past decade, Armstrong World Industries' Graham Number has ranged from 5.76 to 30.53. According to the industry distribution chart, Armstrong World Industries ranks #1167 out of 1219 companies in the Construction industry, placing it in the top 95.7%.
Is Armstrong World Industries' Graham Number too high?
Armstrong World Industries' current Graham Number of $27.87 is 334% above median its 10-year median of 6.42. Over the past 10 years, this metric has ranged from a low of 5.76 to a high of 30.53. The Construction industry median Graham Number is 1.02. Armstrong World Industries' value of $27.87 is 2632.4% above this industry median. Based on the distribution chart, Armstrong World Industries ranks #1167 out of 1219 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Armstrong World Industries has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Armstrong World Industries' Graham Number compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #1167 out of 1219 companies for Graham Number. This places Armstrong World Industries in the lower half of its industry. The industry median Graham Number is 1.02. Armstrong World Industries' value of $27.87 is 2632.4% above this benchmark. Historically, Armstrong World Industries' own Graham Number has ranged from 5.76 to 30.53 over the past decade. While the company's 10-year median is 6.42 vs. the industry median of 1.02, Armstrong World Industries has consistently been above 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 Construction company?
The median Graham Number among Construction companies is 1.02, based on 1,219 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. Armstrong World Industries's current Graham Number of $27.87 is 2632.4% 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 Armstrong World Industries and its competitors. For the Construction industry, the median Graham Number is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current Graham Number is $27.87, which is 334% above median its own 10-year median of 6.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong World Industries stock overvalued right now?
Based on GuruFocus' analysis, Armstrong World Industries (AWI) is currently considered Fairly Valued. The stock's GF Value™ is $173.75, compared to a current price of $182.48 — trading 5% above its estimated fair value. The current Graham Number is $27.87, which is 334% above median its 10-year median of 6.42 and 2632.4% above the Construction industry median of 1.02. Armstrong World Industries' overall GF Score™ is 71/100 with 1 warning sign 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 Armstrong World Industries (AWI), the current Graham Number is $27.87 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 Armstrong World Industries (AWI) Overvalued in 2026?
Based on GuruFocus' analysis, Armstrong World Industries stock appears to be overvalued.
The current stock price of $182.48 is trading 5% above its estimated GF Value™ of $173.75.
GuruFocus considers Armstrong World Industries to be Fairly Valued.
Key valuation signals for AWI:
Graham Number: $27.87 (334% above median its 10-year median of 6.42)
GF Value™: $173.75 vs. price of $182.48 (5% above fair value)
Industry Position: 2632.4% above the Construction median (#1167 of 1219)
No single metric tells the full story. See the AWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armstrong World Industries Inc designs and manufactures exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions, using materials such as mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber, and glass-reinforced-gypsum. Its segments include Mineral Fiber, which produces suspended mineral fiber and fiberglass ceiling systems and includes results from the Worthington Armstrong Venture (WAVE) for ceiling suspension system (grid) products; Architectural Specialties, which designs, produces, and sources specialty ceilings, walls, and other architectural applications for commercial settings, with revenues mainly project driven; and Unallocated Corporate. The company operates in the United States and Canada.
71GF Score
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