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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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 Drilling Tools International's Graham Number or its related term are showing as below:
DTI'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.54 Med: 0.89 Max: 6.56
Current: 3.96
During the past 5 years, the highest Price to Graham Number ratio of Drilling Tools International was 6.56. The lowest was 0.54. And the median was 0.89.
DTI's Price-to-Graham-Number is ranked worse than 93.34% of 631
companies
in the Oil & Gas industry
Industry Median: 1.11
vs DTI: 3.96
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Drilling Tools International (NAS:DTI) 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.
Drilling Tools International's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
2.575
/
0.65
=
3.94
* 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.
Drilling Tools International Graham Number Related Terms
Drilling Tools International 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 Oil & Gas Equipment & Services subindustry, Drilling Tools International'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.
Drilling Tools International Price-to-Graham-Number vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Drilling Tools International's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Drilling Tools International'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.
Drilling Tools International (DTI) has a Graham Number of $0.65 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Drilling Tools International and its competitors. According to the industry distribution chart, Drilling Tools International ranks #589 out of 631 companies in the Oil & Gas industry, placing it in the top 93.3%.
Is Drilling Tools International's Graham Number too high?
Drilling Tools International's current Graham Number is $0.65. The Oil & Gas industry median Graham Number is 1.11. Drilling Tools International's value of $0.65 is 41.4% below this industry median. Based on the distribution chart, Drilling Tools International ranks #589 out of 631 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Drilling Tools International has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Drilling Tools International's Graham Number compare to LSE and DWSN?
According to the Oil & Gas industry distribution chart, Drilling Tools International ranks #589 out of 631 companies for Graham Number. This places Drilling Tools International in the lower half of its industry. The industry median Graham Number is 1.11. Drilling Tools International's value of $0.65 is 41.4% below this benchmark. 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 an Oil & Gas company?
The median Graham Number among Oil & Gas companies is 1.11, based on 631 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. Drilling Tools International's current Graham Number of $0.65 is 41.4% below 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 Drilling Tools International and its competitors. For the Oil & Gas industry, the median Graham Number is 1.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drilling Tools International's current Graham Number is $0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drilling Tools International stock overvalued right now?
Based on GuruFocus' analysis, Drilling Tools International (DTI) is currently considered Fairly Valued. The stock's GF Value™ is $2.69, compared to a current price of $2.58 — trading 4.3% below its estimated fair value. The current Graham Number is $0.65 and 41.4% below the Oil & Gas industry median of 1.11. Drilling Tools International's overall GF Score™ is 63/100 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 Drilling Tools International (DTI), the current Graham Number is $0.65 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 Drilling Tools International (DTI) Overvalued in 2026?
Based on GuruFocus' analysis, Drilling Tools International stock appears to be undervalued.
The current stock price of $2.58 is trading 4.3% below its estimated GF Value™ of $2.69.
GuruFocus considers Drilling Tools International to be Fairly Valued.
Key valuation signals for DTI:
Graham Number: $0.65
GF Value™: $2.69 vs. price of $2.58 (4.3% below fair value)
Industry Position: 41.4% below the Oil & Gas median (#589 of 631)
No single metric tells the full story. See the DTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Drilling Tools International Corp is an oilfield services company that designs, engineers, and manufactures rental-focused tools used in onshore and offshore horizontal and directional drilling operations, as well as solutions across the well life cycle. It operates through two geographic segments: Western Hemisphere and Eastern Hemisphere. The Western Hemisphere, which generates the majority of revenue, provides downhole drilling tools and rental services for onshore and offshore operations across North America and Latin America, supported by service centers in the U.S. and Canada. The Eastern Hemisphere covers Europe, the Middle East, and Asia-Pacific, where the company offers drilling and well lifecycle solutions through international service centers across the EMEA and APAC regions.
63GF Score
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