Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Powell IndustriesFRA:PW2 -12.56%78 Graham Number is €40.45 as of Mar. 2026, which is 100% below its 10-year median of 1.53. GuruFocus rates FRA:PW2 with a GF Score™ of 78/100 and a GF Value™ of €67.76 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,203 Industrial Products companies, Powell Industries ranks worse than 82.43% on this metric.
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 (2026-07-30), the stock price of Powell Industries is €163.60. Powell Industries's graham number for the quarter that ended in Mar. 2026 was €40.45. Therefore, Powell Industries's Price to Graham Number ratio for today is 4.04.
The historical rank and industry rank for Powell Industries's Graham Number or its related term are showing as below:
FRA:PW2'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.79 Med: 1.53 Max: 4.56
Current: 3.97
During the past 13 years, the highest Price to Graham Number ratio of Powell Industries was 4.56. The lowest was 0.79. And the median was 1.53.
FRA:PW2's Price-to-Graham-Number is ranked worse than 82.43% of 2203
companies
in the Industrial Products industry
Industry Median: 1.66
vs FRA:PW2: 3.97
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Powell Industries (FRA:PW2) 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.
Powell Industries's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
163.60
/
40.45
=
4.04
* 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.
Powell Industries Graham Number Related Terms
Powell Industries Graham Number Historical Data
* Premium members only.
The historical data trend for Powell Industries'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:PW2 vs FPS, AYI, ENS: Graham Number Comparison
For the Electrical Equipment & Parts subindustry, Powell Industries'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.
Powell Industries Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Powell Industries'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.
Powell Industries (FRA:PW2) has a Graham Number of €40.45 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Powell Industries and its competitors. This is 2544% above median its historical median of 1.53. Over the past decade, Powell Industries' Graham Number has ranged from 0.79 to 4.56. According to the industry distribution chart, Powell Industries ranks #1816 out of 2203 companies in the Industrial Products industry, placing it in the top 82.4%.
Is Powell Industries' Graham Number too high?
Powell Industries' current Graham Number of €40.45 is 2544% above median its 10-year median of 1.53. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 4.56. Based on the distribution chart, Powell Industries ranks #1816 out of 2203 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Powell Industries has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powell Industries' Graham Number compare to FPS and AYI?
According to the Industrial Products industry distribution chart, Powell Industries ranks #1816 out of 2203 companies for Graham Number. This places Powell Industries in the lower half of its industry. The industry median Graham Number is 1.66. Historically, Powell Industries' own Graham Number has ranged from 0.79 to 4.56 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 Products company?
The median Graham Number among Industrial Products companies is 1.66, based on 2,203 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 Powell Industries and its competitors. For the Industrial Products industry, the median Graham Number is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powell Industries's current Graham Number is €40.45, which is 2544% above median its own 10-year median of 1.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powell Industries stock overvalued right now?
Based on GuruFocus' analysis, Powell Industries (FRA:PW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €67.76, compared to a current price of €163.60 — trading 141.4% above its estimated fair value. The current Graham Number is €40.45, which is 2544% above median its 10-year median of 1.53. Powell Industries' overall GF Score™ is 78/100 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 Powell Industries (FRA:PW2), the current Graham Number is €40.45 as of Mar. 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 Powell Industries (FRA:PW2) Overvalued in 2026?
Based on GuruFocus' analysis, Powell Industries stock appears to be overvalued.
The current stock price of €163.60 is trading 141.4% above its estimated GF Value™ of €67.76.
GuruFocus considers Powell Industries to be Significantly Overvalued.
Key valuation signals for FRA:PW2:
Graham Number: €40.45 (2544% above median its 10-year median of 1.53)
GF Value™: €67.76 vs. price of €163.60 (141.4% above fair value)
No single metric tells the full story. See the FRA:PW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States, and the rest from Canada, Europe, Asia Pacific, and other regions.
78GF Score
Get the complete analysis for FRA:PW2
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:PW2 has been successfully added to your 
