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 Omega Healthcare Investors's Graham Number or its related term are showing as below:
BSP:O2HI34'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.15 Med: 1.66 Max: 2.79
Current: 1.79
During the past 13 years, the highest Price to Graham Number ratio of Omega Healthcare Investors was 2.79. The lowest was 1.15. And the median was 1.66.
BSP:O2HI34's Price-to-Graham-Number is ranked worse than 86.05% of 731
companies
in the REITs industry
Industry Median: 0.73
vs BSP:O2HI34: 1.79
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Omega Healthcare Investors (BSP:O2HI34) 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.
Omega Healthcare Investors's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
77.02
/
137.32
=
0.56
* 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.
Omega Healthcare Investors Graham Number Related Terms
Omega Healthcare Investors 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.
BSP:O2HI34 vs DOC, AHR, CTRE: Graham Number Comparison
For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors'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.
Omega Healthcare Investors Price-to-Graham-Number vs REITs Industry
For the REITs industry and Real Estate sector, Omega Healthcare Investors's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Omega Healthcare Investors'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.
Omega Healthcare Investors (BSP:O2HI34) has a Graham Number of R$137.32 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Omega Healthcare Investors and its competitors. This is 8172% above median its historical median of 1.66. Over the past decade, Omega Healthcare Investors' Graham Number has ranged from 1.15 to 2.79. According to the industry distribution chart, Omega Healthcare Investors ranks #629 out of 731 companies in the REITs industry, placing it in the top 86%.
Is Omega Healthcare Investors' Graham Number too high?
Omega Healthcare Investors' current Graham Number of R$137.32 is 8172% above median its 10-year median of 1.66. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 2.79. Based on the distribution chart, Omega Healthcare Investors ranks #629 out of 731 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Omega Healthcare Investors has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Omega Healthcare Investors' Graham Number compare to DOC and AHR?
According to the REITs industry distribution chart, Omega Healthcare Investors ranks #629 out of 731 companies for Graham Number. This places Omega Healthcare Investors in the lower half of its industry. The industry median Graham Number is 0.73. Historically, Omega Healthcare Investors' own Graham Number has ranged from 1.15 to 2.79 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 REITs company?
The median Graham Number among REITs companies is 0.73, based on 731 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 Omega Healthcare Investors 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. Omega Healthcare Investors's current Graham Number is R$137.32, which is 8172% above median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Omega Healthcare Investors stock overvalued right now?
Based on GuruFocus' analysis, Omega Healthcare Investors (BSP:O2HI34) is currently considered Modestly Overvalued. The stock's GF Value™ is R$60.64, compared to a current price of R$77.02 — trading 27% above its estimated fair value. The current Graham Number is R$137.32, which is 8172% above median its 10-year median of 1.66. Omega Healthcare Investors' overall GF Score™ is 49/100 with 6 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 Omega Healthcare Investors (BSP:O2HI34), the current Graham Number is R$137.32 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 Omega Healthcare Investors (BSP:O2HI34) Overvalued in 2026?
Based on GuruFocus' analysis, Omega Healthcare Investors stock appears to be overvalued.
The current stock price of R$77.02 is trading 27% above its estimated GF Value™ of R$60.64.
GuruFocus considers Omega Healthcare Investors to be Modestly Overvalued.
Key valuation signals for BSP:O2HI34:
Graham Number: R$137.32 (8172% above median its 10-year median of 1.66)
GF Value™: R$60.64 vs. price of R$77.02 (27% above fair value)
No single metric tells the full story. See the BSP:O2HI34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Omega Healthcare Investors Inc is a real estate investment trust that invests in healthcare-related real estate properties located in the United States (U.S.), the United Kingdom (U.K.), and Canada. The company's objective is to provide attractive returns to investors while serving as the preferred capital partner to its third-party healthcare operating companies and affiliates, as well as other third-party healthcare operators, allowing them to focus on delivering a high level of care to their resident patients. Omega's investment portfolio mainly consists of skilled nursing facilities, assisted living facilities (ALFs), including care homes in the U.K., independent living facilities, rehabilitation and acute care facilities, and continuing care retirement communities.
49GF Score
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