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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.
The historical rank and industry rank for Eagle Pharmaceuticals's Graham Number or its related term are showing as below:
EGRX's Price-to-Graham-Number is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.58 * 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.
Eagle Pharmaceuticals (OTCPK:EGRX) 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.
Eagle Pharmaceuticals's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2023 )
=
0.75
/
28.17
=
0.03
* 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.
Eagle Pharmaceuticals Graham Number Related Terms
Eagle Pharmaceuticals Graham Number Historical Data
* Premium members only.
The historical data trend for Eagle Pharmaceuticals'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.
EGRX vs IXHL, RMTI, CHHE: Graham Number Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Eagle Pharmaceuticals'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.
Eagle Pharmaceuticals Price-to-Graham-Number vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eagle Pharmaceuticals's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Eagle Pharmaceuticals'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.
Eagle Pharmaceuticals (EGRX) has a Graham Number of $28.17 as of Jun. 2023. The Graham Number values a company based on its per-share earnings and book value. View historical data on Eagle Pharmaceuticals and its competitors.
Is Eagle Pharmaceuticals' Graham Number too high?
Eagle Pharmaceuticals' current Graham Number is $28.17. The Drug Manufacturers industry median Graham Number is 1.58. Eagle Pharmaceuticals' value of $28.17 is 1682.9% above this industry median. Overall, Eagle Pharmaceuticals has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Eagle Pharmaceuticals' Graham Number compare to IXHL and RMTI?
Eagle Pharmaceuticals' Graham Number of $28.17 can be compared against companies in the Drug Manufacturers industry. The industry median Graham Number is 1.58. Eagle Pharmaceuticals' value of $28.17 is 1682.9% above 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 a Drug Manufacturers company?
The median Graham Number among Drug Manufacturers companies is 1.58, based on 596 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. Eagle Pharmaceuticals's current Graham Number of $28.17 is 1682.9% 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 Eagle Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Graham Number is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eagle Pharmaceuticals's current Graham Number is $28.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eagle Pharmaceuticals stock overvalued right now?
Eagle Pharmaceuticals (EGRX) has a current Graham Number of $28.17. The current Graham Number is $28.17 and 1682.9% above the Drug Manufacturers industry median of 1.58. Eagle Pharmaceuticals' overall GF Score™ is 16/100. 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 Eagle Pharmaceuticals (EGRX), the current Graham Number is $28.17 as of Jun. 2023. 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.
Eagle Pharmaceuticals Inc is a specialty pharmaceutical company. The company develops and commercializes injectable products in the areas of critical care, orphan diseases, and oncology. Its product portfolio consists of four approved products: Argatroban, Ryanodex, Belrapzo, and Bendeka. The company currently has multiple product candidates in advance stages of development and is under review for approval by the Food and Drug Administration.
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