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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 (2026-09-11), the stock price of Nelnet is €107.00. Nelnet's graham number for the quarter that ended in Jun. 2026 was €115.80. Therefore, Nelnet's Price to Graham Number ratio for today is 0.92.
The historical rank and industry rank for Nelnet's Graham Number or its related term are showing as below:
FRA:NIJ'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.57 Med: 0.79 Max: 1.35
Current: 0.94
During the past 13 years, the highest Price to Graham Number ratio of Nelnet was 1.35. The lowest was 0.57. And the median was 0.79.
FRA:NIJ's Price-to-Graham-Number is ranked worse than 56.25% of 400
companies
in the Credit Services industry
Industry Median: 0.8
vs FRA:NIJ: 0.94
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
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.
Nelnet's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
107.00
/
115.80
=
0.92
* 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.
Nelnet Graham Number Related Terms
Nelnet Graham Number Historical Data
* Premium members only.
The historical data trend for Nelnet'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:NIJ vs SEZL, SLM, BFH: Graham Number Comparison
For the Credit Services subindustry, Nelnet'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.
Nelnet Price-to-Graham-Number vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Nelnet's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Nelnet'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.
Nelnet (FRA:NIJ) has a Graham Number of €115.80 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Nelnet and its competitors. According to the industry distribution chart, Nelnet ranks #225 out of 400 companies in the Credit Services industry, placing it in the top 56.2%.
Is Nelnet's Graham Number too high?
Nelnet's current Graham Number is €115.80. Based on the distribution chart, Nelnet ranks #225 out of 400 companies in the Credit Services industry, which is below the industry midpoint. Overall, Nelnet has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Nelnet's Graham Number compare to SEZL and SLM?
According to the Credit Services industry distribution chart, Nelnet ranks #225 out of 400 companies for Graham Number. This places Nelnet in the lower half of its industry. The industry median Graham Number is 0.80. 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 Credit Services company?
The median Graham Number among Credit Services companies is 0.80, based on 400 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 Nelnet and its competitors. For the Credit Services industry, the median Graham Number is 0.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nelnet's current Graham Number is €115.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nelnet stock overvalued right now?
Nelnet (FRA:NIJ) has a current Graham Number of €115.80. The stock's GF Value™ is €128.97, compared to a current price of €107.00 — trading 17% below its estimated fair value. The current Graham Number is €115.80. Nelnet's overall GF Score™ is 61/100 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 Nelnet (FRA:NIJ), the current Graham Number is €115.80 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 Nelnet (FRA:NIJ) Overvalued in 2026?
Based on GuruFocus' analysis, Nelnet stock appears to be undervalued.
The current stock price of €107.00 is trading 17% below its estimated GF Value™ of €128.97.
Key valuation signals for FRA:NIJ:
Graham Number: €115.80
GF Value™: €128.97 vs. price of €107.00 (17% below fair value)
No single metric tells the full story. See the FRA:NIJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nelnet Inc is a United States based company engaged in these four reportable segments; Loan Servicing and Systems, which focuses on student and consumer loan origination services and servicing, loan origination and servicing-related technology solutions, and outsourcing business services; Education Technology Services and Payments segment provides education services, payment technology, and community management solutions for K-12 schools, institutions, churches, and businesses; Asset Generation and Management segment includes the acquisition and management of student and other loan assets; and Nelnet Bank focuses on the private education and unsecured consumer loan markets. Maximum revenue for the company is generated from its Asset Generation and Management.
61GF Score
Get the complete analysis for FRA:NIJ
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