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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 (2026-07-22), the stock price of ALA SpA is €36.00. ALA SpA's graham number for the quarter that ended in Jun. 2025 was €17.32. Therefore, ALA SpA's Price to Graham Number ratio for today is 2.08.
The historical rank and industry rank for ALA SpA's Graham Number or its related term are showing as below:
FRA:8WD'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.14 Med: 1.59 Max: 2.16
Current: 2.08
During the past 7 years, the highest Price to Graham Number ratio of ALA SpA was 2.16. The lowest was 1.14. And the median was 1.59.
FRA:8WD's Price-to-Graham-Number is not ranked
in the Industrial Distribution industry.
Industry Median: 0.94
vs FRA:8WD: 2.08
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
ALA SpA (FRA:8WD) 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.
ALA SpA's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2025 )
=
36.00
/
17.32
=
2.08
* 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.
ALA SpA Graham Number Related Terms
ALA SpA Graham Number Historical Data
* Premium members only.
The historical data trend for ALA SpA'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.
FRA:8WD vs GWW, FAST, FERG: Graham Number Comparison
For the Industrial Distribution subindustry, ALA SpA'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.
ALA SpA Price-to-Graham-Number vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, ALA SpA's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where ALA SpA'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.
ALA SpA (FRA:8WD) has a Graham Number of €17.32 as of Jun. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on ALA SpA and its competitors. This is 989% above median its historical median of 1.59. Over the past decade, ALA SpA's Graham Number has ranged from 1.14 to 2.16.
Is ALA SpA's Graham Number too high?
ALA SpA's current Graham Number of €17.32 is 989% above median its 10-year median of 1.59. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 2.16. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's Graham Number compare to GWW and FAST?
ALA SpA's Graham Number of €17.32 can be compared against companies in the Industrial Distribution industry. The industry median Graham Number is 0.94. Historically, ALA SpA's own Graham Number has ranged from 1.14 to 2.16 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 an Industrial Distribution company?
The median Graham Number among Industrial Distribution companies is 0.94, based on 115 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 ALA SpA and its competitors. For the Industrial Distribution industry, the median Graham Number is 0.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALA SpA's current Graham Number is €17.32, which is 989% above median its own 10-year median of 1.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (FRA:8WD) has a current Graham Number of €17.32. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current Graham Number is €17.32, which is 989% above median its 10-year median of 1.59. ALA SpA's overall GF Score™ is 66/100 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 ALA SpA (FRA:8WD), the current Graham Number is €17.32 as of Jun. 2025. 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 ALA SpA (FRA:8WD) Overvalued in 2026?
Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued.
The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.
Key valuation signals for FRA:8WD:
Graham Number: €17.32 (989% above median its 10-year median of 1.59)
GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
No single metric tells the full story. See the FRA:8WD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF Score
Get the complete analysis for FRA:8WD
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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