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 Direct Digital Holdings's Graham Number or its related term are showing as below:
DRCT's Price-to-Graham-Number is not ranked *
in the Media - Diversified industry.
Industry Median: 1.205 * 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.
Direct Digital Holdings (NAS:DRCT) 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.
Direct Digital Holdings's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
2.66
/
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.
Direct Digital Holdings Graham Number Related Terms
Direct Digital Holdings 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 Advertising Agencies subindustry, Direct Digital Holdings'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.
Direct Digital Holdings Price-to-Graham-Number vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings'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.
Direct Digital Holdings (DRCT) 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 Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #999999 out of 492 companies in the Media - Diversified industry.
Is Direct Digital Holdings' Graham Number too high?
Direct Digital Holdings' current Graham Number is $N/A. Based on the distribution chart, Direct Digital Holdings ranks #999999 out of 492 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' Graham Number compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #999999 out of 492 companies for Graham Number. This places Direct Digital Holdings in the lower half of its industry. The industry median Graham Number is 1.21. 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 Media - Diversified company?
The median Graham Number among Media - Diversified companies is 1.21, based on 492 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 Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median Graham Number is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings'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 Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $20.58, compared to a current price of $2.66 — trading 87.1% below its estimated fair value. The current Graham Number is $N/A. Direct Digital Holdings' overall GF Score™ is 43/100 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 Direct Digital Holdings (DRCT), 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 Direct Digital Holdings (DRCT) Overvalued in 2026?
Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued.
The current stock price of $2.66 is trading 87.1% below its estimated GF Value™ of $20.58.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
Graham Number: $N/A
GF Value™: $20.58 vs. price of $2.66 (87.1% below fair value)
No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score
Get the complete analysis for DRCT
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DRCT has been successfully added to your 
