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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 (2026-07-19), the stock price of Builders FirstSource is $74.26. Builders FirstSource's graham number for the quarter that ended in Mar. 2026 was $N/A. Therefore, Builders FirstSource's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Builders FirstSource's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Builders FirstSource was 11.19. The lowest was 1.45. And the median was 3.04.
BLDR's Price-to-Graham-Number is not ranked *
in the Construction industry.
Industry Median: 1 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Builders FirstSource (NYSE:BLDR) 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.
Builders FirstSource's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
74.26
/
N/A
=
N/A
* 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.
Builders FirstSource Graham Number Related Terms
Builders FirstSource Graham Number Historical Data
* Premium members only.
The historical data trend for Builders FirstSource'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.
For the Building Products & Equipment subindustry, Builders FirstSource'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.
Builders FirstSource Price-to-Graham-Number vs Construction Industry
For the Construction industry and Industrials sector, Builders FirstSource's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Builders FirstSource'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.
Builders FirstSource (BLDR) has a Graham Number of $N/A as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Builders FirstSource and its competitors. Over the past decade, Builders FirstSource's Graham Number has ranged from 1.45 to 11.19. According to the industry distribution chart, Builders FirstSource ranks #999999 out of 1216 companies in the Construction industry.
Is Builders FirstSource's Graham Number too high?
Builders FirstSource's current Graham Number is $N/A. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 11.19. Based on the distribution chart, Builders FirstSource ranks #999999 out of 1216 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Builders FirstSource has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Builders FirstSource's Graham Number compare to AAON and OC?
According to the Construction industry distribution chart, Builders FirstSource ranks #999999 out of 1216 companies for Graham Number. This places Builders FirstSource in the lower half of its industry. The industry median Graham Number is 1.00. Historically, Builders FirstSource's own Graham Number has ranged from 1.45 to 11.19 over the past decade. 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 1.00, based on 1,216 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. 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 Builders FirstSource and its competitors. For the Construction industry, the median Graham Number is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Builders FirstSource's current Graham Number is $N/A. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Builders FirstSource stock overvalued right now?
Based on GuruFocus' analysis, Builders FirstSource (BLDR) is currently considered Significantly Undervalued. The stock's GF Value™ is $133.71, compared to a current price of $74.26 — trading 44.5% below its estimated fair value. The current Graham Number is $N/A. Builders FirstSource's overall GF Score™ is 81/100 with 7 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 Builders FirstSource (BLDR), the current Graham Number is $N/A as of Mar. 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 Builders FirstSource (BLDR) Overvalued in 2026?
Based on GuruFocus' analysis, Builders FirstSource stock appears to be undervalued.
The current stock price of $74.26 is trading 44.5% below its estimated GF Value™ of $133.71.
GuruFocus considers Builders FirstSource to be Significantly Undervalued.
Key valuation signals for BLDR:
Graham Number: $N/A
GF Value™: $133.71 vs. price of $74.26 (44.5% below fair value)
No single metric tells the full story. See the BLDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.
81GF Score
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