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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.
As of today (2026-08-17), the stock price of Elanco Animal Health is $23.67. Elanco Animal Health's graham number for the quarter that ended in Jun. 2026 was $N/A. Therefore, Elanco Animal Health's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Elanco Animal Health's Graham Number or its related term are showing as below:
During the past 11 years, the highest Price to Graham Number ratio of Elanco Animal Health was 13.51. The lowest was 2.99. And the median was 6.65.
ELAN's Price-to-Graham-Number is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.59 * 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.
Elanco Animal Health (NYSE:ELAN) 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.
Elanco Animal Health's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
23.67
/
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.
Elanco Animal Health Graham Number Related Terms
Elanco Animal Health Graham Number Historical Data
* Premium members only.
The historical data trend for Elanco Animal Health'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.
ELAN vs ALKS, LQDA, NBIX: Graham Number Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health'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.
Elanco Animal Health Price-to-Graham-Number vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elanco Animal Health's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Elanco Animal Health'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.
Elanco Animal Health (ELAN) has a Graham Number of $N/A as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Elanco Animal Health and its competitors. Over the past decade, Elanco Animal Health's Graham Number has ranged from 2.99 to 13.51. According to the industry distribution chart, Elanco Animal Health ranks #999999 out of 600 companies in the Drug Manufacturers industry.
Is Elanco Animal Health's Graham Number too high?
Elanco Animal Health's current Graham Number is $N/A. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 13.51. Based on the distribution chart, Elanco Animal Health ranks #999999 out of 600 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Elanco Animal Health has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elanco Animal Health's Graham Number compare to ALKS and LQDA?
According to the Drug Manufacturers industry distribution chart, Elanco Animal Health ranks #999999 out of 600 companies for Graham Number. This places Elanco Animal Health in the lower half of its industry. The industry median Graham Number is 1.59. Historically, Elanco Animal Health's own Graham Number has ranged from 2.99 to 13.51 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 Drug Manufacturers company?
The median Graham Number among Drug Manufacturers companies is 1.59, based on 600 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 Elanco Animal Health and its competitors. For the Drug Manufacturers industry, the median Graham Number is 1.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elanco Animal Health'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 Elanco Animal Health stock overvalued right now?
Based on GuruFocus' analysis, Elanco Animal Health (ELAN) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.66, compared to a current price of $23.67 — trading 42.1% above its estimated fair value. The current Graham Number is $N/A. Elanco Animal Health's overall GF Score™ is 69/100 with 2 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 Elanco Animal Health (ELAN), the current Graham Number is $N/A 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 Elanco Animal Health (ELAN) Overvalued in 2026?
Based on GuruFocus' analysis, Elanco Animal Health stock appears to be overvalued.
The current stock price of $23.67 is trading 42.1% above its estimated GF Value™ of $16.66.
GuruFocus considers Elanco Animal Health to be Significantly Overvalued.
Key valuation signals for ELAN:
Graham Number: $N/A
GF Value™: $16.66 vs. price of $23.67 (42.1% above fair value)
No single metric tells the full story. See the ELAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elanco Animal Health is an animal health company that is engaged in developing, manufacturing, and marketing pharma products for companion and food animals. It spun off from Eli Lilly in 2018 and acquired Janssen Animal Health in 2011, Novartis Animal Health in 2014, Boehringer Ingelheim Vetmedica in 2017, and Bayer Animal Health in 2020. The company's operations are conducted globally, and it sells its products in over 90 countries. It offers a range of food animal products used in cattle, sheep, poultry, and swine production.
69GF Score
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