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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.
Grand Canyon Education (FRA:GKD) 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.
Grand Canyon Education's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
120.55
/
47.12
=
2.56
* 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.
Grand Canyon Education Graham Number Related Terms
Grand Canyon Education 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.
FRA:GKD vs LRN, CVSA, LAUR: Graham Number Comparison
For the Education & Training Services subindustry, Grand Canyon Education'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.
Grand Canyon Education Price-to-Graham-Number vs Education Industry
For the Education industry and Consumer Defensive sector, Grand Canyon Education's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Grand Canyon Education'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.
Grand Canyon Education (FRA:GKD) has a Graham Number of €47.12 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Grand Canyon Education and its competitors. This is 1888% above median its historical median of 2.37. Over the past decade, Grand Canyon Education's Graham Number has ranged from 1.27 to 3.91. According to the industry distribution chart, Grand Canyon Education ranks #129 out of 158 companies in the Education industry, placing it in the top 81.6%.
Is Grand Canyon Education's Graham Number too high?
Grand Canyon Education's current Graham Number of €47.12 is 1888% above median its 10-year median of 2.37. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 3.91. Based on the distribution chart, Grand Canyon Education ranks #129 out of 158 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Grand Canyon Education has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Grand Canyon Education's Graham Number compare to LRN and CVSA?
According to the Education industry distribution chart, Grand Canyon Education ranks #129 out of 158 companies for Graham Number. This places Grand Canyon Education in the lower half of its industry. The industry median Graham Number is 1.21. Historically, Grand Canyon Education's own Graham Number has ranged from 1.27 to 3.91 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 Education company?
The median Graham Number among Education companies is 1.21, based on 158 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 Grand Canyon Education and its competitors. For the Education 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. Grand Canyon Education's current Graham Number is €47.12, which is 1888% above median its own 10-year median of 2.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grand Canyon Education stock overvalued right now?
Grand Canyon Education (FRA:GKD) has a current Graham Number of €47.12. The stock's GF Value™ is €152.23, compared to a current price of €120.55 — trading 20.8% below its estimated fair value. The current Graham Number is €47.12, which is 1888% above median its 10-year median of 2.37. Grand Canyon Education's overall GF Score™ is 83/100 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 Grand Canyon Education (FRA:GKD), the current Graham Number is €47.12 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 Grand Canyon Education (FRA:GKD) Overvalued in 2026?
Based on GuruFocus' analysis, Grand Canyon Education stock appears to be undervalued.
The current stock price of €120.55 is trading 20.8% below its estimated GF Value™ of €152.23.
Key valuation signals for FRA:GKD:
Graham Number: €47.12 (1888% above median its 10-year median of 2.37)
GF Value™: €152.23 vs. price of €120.55 (20.8% below fair value)
No single metric tells the full story. See the FRA:GKD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grand Canyon Education Inc is a publicly traded education services company dedicated to serving colleges and universities. GCE's university partner is Grand Canyon University, an Arizona non-profit corporation that operates a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases, and certificates across nine colleges, both online and on the ground at its campus in Phoenix, Arizona, and at four off-site classroom andlaboratory sites. The Company generates all of its revenue through service agreements with its university partners.
83GF Score
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