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Digital GarageDLGEF 67 Graham Number is $5.91 as of Mar. 2026, which is 190% above its 10-year median of 2.04. GuruFocus rates DLGEF with a GF Score™ of 67/100 and a GF Value™ of $28.88 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 1,479 Software companies, Digital Garage ranks worse than 65.25% 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 (2026-07-26), the stock price of Digital Garage is $14.28. Digital Garage's graham number for the quarter that ended in Mar. 2026 was $5.91. Therefore, Digital Garage's Price to Graham Number ratio for today is 2.41.
The historical rank and industry rank for Digital Garage's Graham Number or its related term are showing as below:
DLGEF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.94 Med: 2.04 Max: 2.57
Current: 2.56
During the past 13 years, the highest Price to Graham Number ratio of Digital Garage was 2.57. The lowest was 0.94. And the median was 2.04.
DLGEF's Price-to-Graham-Number is ranked worse than 65.25% of 1479
companies
in the Software industry
Industry Median: 1.85
vs DLGEF: 2.56
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Digital Garage (OTCPK:DLGEF) 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.
Digital Garage's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
14.28
/
5.91
=
2.41
* 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.
Digital Garage Graham Number Related Terms
Digital Garage Graham Number Historical Data
* Premium members only.
The historical data trend for Digital Garage'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 Information Technology Services subindustry, Digital Garage'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.
Digital Garage Price-to-Graham-Number vs Software Industry
For the Software industry and Technology sector, Digital Garage's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Digital Garage'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.
Digital Garage (DLGEF) has a Graham Number of $5.91 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Digital Garage and its competitors. This is 190% above median its historical median of 2.04. Over the past decade, Digital Garage's Graham Number has ranged from 0.94 to 2.57. According to the industry distribution chart, Digital Garage ranks #965 out of 1479 companies in the Software industry, placing it in the top 65.2%.
Is Digital Garage's Graham Number too high?
Digital Garage's current Graham Number of $5.91 is 190% above median its 10-year median of 2.04. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 2.57. The Software industry median Graham Number is 1.85. Digital Garage's value of $5.91 is 219.5% above this industry median. Based on the distribution chart, Digital Garage ranks #965 out of 1479 companies in the Software industry, which is below the industry midpoint. Overall, Digital Garage has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Digital Garage's Graham Number compare to IBM and ACN?
According to the Software industry distribution chart, Digital Garage ranks #965 out of 1479 companies for Graham Number. This places Digital Garage in the lower half of its industry. The industry median Graham Number is 1.85. Digital Garage's value of $5.91 is 219.5% above this benchmark. Historically, Digital Garage's own Graham Number has ranged from 0.94 to 2.57 over the past decade. While the company's 10-year median is 2.04 vs. the industry median of 1.85, Digital Garage 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 Software company?
The median Graham Number among Software companies is 1.85, based on 1,479 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. Digital Garage's current Graham Number of $5.91 is 219.5% 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 Digital Garage and its competitors. For the Software industry, the median Graham Number is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Garage's current Graham Number is $5.91, which is 190% above median its own 10-year median of 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Garage stock overvalued right now?
Based on GuruFocus' analysis, Digital Garage (DLGEF) is currently considered Possible Value Trap. The stock's GF Value™ is $28.88, compared to a current price of $14.28 — trading 50.6% below its estimated fair value. The current Graham Number is $5.91, which is 190% above median its 10-year median of 2.04 and 219.5% above the Software industry median of 1.85. Digital Garage's overall GF Score™ is 67/100 with 10 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 Digital Garage (DLGEF), the current Graham Number is $5.91 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 Digital Garage (DLGEF) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Garage stock appears to be undervalued.
The current stock price of $14.28 is trading 50.6% below its estimated GF Value™ of $28.88.
GuruFocus considers Digital Garage to be Possible Value Trap.
Key valuation signals for DLGEF:
Graham Number: $5.91 (190% above median its 10-year median of 2.04)
GF Value™: $28.88 vs. price of $14.28 (50.6% below fair value)
Industry Position: 219.5% above the Software median (#965 of 1479)
No single metric tells the full story. See the DLGEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Garage Inc integrates three technologies--information technology, marketing technology, and financial technology--into one solution that it provides to its business customers. The company operates three primary business segments. The incubation segment invests in and develops startups and new businesses. The marketing segment provides advertising and promotion solutions that reach consumers. The financial segment offers payment solutions to monetize Internet businesses. The marketing and financial segments provide most of the company's revenue. Digital Garage operates primarily in Japan.
67GF Score
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