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Friedman IndustriesFRD -1.73%70 Graham Number is $32.81 as of Mar. 2026, which is 6210% above its 10-year median of 0.52. GuruFocus rates FRD with a GF Score™ of 70/100 and a GF Value™ of $22.31 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 423 Steel companies, Friedman Industries ranks worse than 56.5% 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 (2026-07-19), the stock price of Friedman Industries is $34.09. Friedman Industries's graham number for the quarter that ended in Mar. 2026 was $32.81. Therefore, Friedman Industries's Price to Graham Number ratio for today is 1.04.
The historical rank and industry rank for Friedman Industries's Graham Number or its related term are showing as below:
FRD'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.3 Med: 0.52 Max: 1.04
Current: 1.04
During the past 13 years, the highest Price to Graham Number ratio of Friedman Industries was 1.04. The lowest was 0.30. And the median was 0.52.
FRD's Price-to-Graham-Number is ranked worse than 56.5% of 423
companies
in the Steel industry
Industry Median: 0.94
vs FRD: 1.04
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Friedman Industries (NAS:FRD) 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.
Friedman Industries's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
34.09
/
32.81
=
1.04
* 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.
Friedman Industries Graham Number Related Terms
Friedman Industries Graham Number Historical Data
* Premium members only.
The historical data trend for Friedman 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.
For the Steel subindustry, Friedman 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.
Friedman Industries Price-to-Graham-Number vs Steel Industry
For the Steel industry and Basic Materials sector, Friedman Industries's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Friedman 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.
Friedman Industries (FRD) has a Graham Number of $32.81 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Friedman Industries and its competitors. This is 6210% above median its historical median of 0.52. Over the past decade, Friedman Industries' Graham Number has ranged from 0.30 to 1.04. According to the industry distribution chart, Friedman Industries ranks #239 out of 423 companies in the Steel industry, placing it in the top 56.5%.
Is Friedman Industries' Graham Number too high?
Friedman Industries' current Graham Number of $32.81 is 6210% above median its 10-year median of 0.52. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 1.04. The Steel industry median Graham Number is 0.94. Friedman Industries' value of $32.81 is 3390.4% above this industry median. Based on the distribution chart, Friedman Industries ranks #239 out of 423 companies in the Steel industry, which is below the industry midpoint. Overall, Friedman Industries has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Friedman Industries' Graham Number compare to INHD and MSB?
According to the Steel industry distribution chart, Friedman Industries ranks #239 out of 423 companies for Graham Number. This places Friedman Industries in the lower half of its industry. The industry median Graham Number is 0.94. Friedman Industries' value of $32.81 is 3390.4% above this benchmark. Historically, Friedman Industries' own Graham Number has ranged from 0.30 to 1.04 over the past decade. While the company's 10-year median is 0.52 vs. the industry median of 0.94, Friedman Industries has consistently been above the industry average. 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 Steel company?
The median Graham Number among Steel companies is 0.94, based on 423 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. Friedman Industries's current Graham Number of $32.81 is 3390.4% above the industry median. 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 Friedman Industries and its competitors. For the Steel 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. Friedman Industries's current Graham Number is $32.81, which is 6210% above median its own 10-year median of 0.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Friedman Industries stock overvalued right now?
Based on GuruFocus' analysis, Friedman Industries (FRD) is currently considered Significantly Overvalued. The stock's GF Value™ is $22.31, compared to a current price of $34.09 — trading 52.8% above its estimated fair value. The current Graham Number is $32.81, which is 6210% above median its 10-year median of 0.52 and 3390.4% above the Steel industry median of 0.94. Friedman Industries' overall GF Score™ is 70/100 with 9 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 Friedman Industries (FRD), the current Graham Number is $32.81 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 Friedman Industries (FRD) Overvalued in 2026?
Based on GuruFocus' analysis, Friedman Industries stock appears to be overvalued.
The current stock price of $34.09 is trading 52.8% above its estimated GF Value™ of $22.31.
GuruFocus considers Friedman Industries to be Significantly Overvalued.
Key valuation signals for FRD:
Graham Number: $32.81 (6210% above median its 10-year median of 0.52)
GF Value™: $22.31 vs. price of $34.09 (52.8% above fair value)
Industry Position: 3390.4% above the Steel median (#239 of 423)
No single metric tells the full story. See the FRD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Friedman Industries Inc is a manufacturer and processor of metals and operates in two reportable segments: flat-roll products and tubular products. The flat-roll product segment consists of flat-roll processing facilities located in Hickman, Arkansas; Decatur, Alabama; Miami, Florida; East Chicago, Indiana; Granite City, Illinois and Sinton, Texas and a flat-roll distribution facility located in Orlando, Florida. The tubular product segment consists of the Company's Texas Tubular Products division (TTP) located in Lone Star, Texas. TTP operates two electric resistance welded pipe mills with a combined outside diameter (OD). Its products are flat-roll products and tubular products.
70GF Score
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