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Grocery Outlet HoldingGO -1.36%65 Graham Number is $6.29 as of Mar. 2026, which is 93% above its 10-year median of 3.26. GuruFocus rates GO with a GF Score™ of 65/100 and a GF Value™ of $19.38 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 238 Retail - Defensive companies, Grocery Outlet Holding ranks worse than 57.56% 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.
The historical rank and industry rank for Grocery Outlet Holding's Graham Number or its related term are showing as below:
GO'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.12 Med: 3.26 Max: 12.95
Current: 1.5
During the past 10 years, the highest Price to Graham Number ratio of Grocery Outlet Holding was 12.95. The lowest was 1.12. And the median was 3.26.
GO's Price-to-Graham-Number is ranked worse than 57.56% of 238
companies
in the Retail - Defensive industry
Industry Median: 1.275
vs GO: 1.50
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Grocery Outlet Holding (NAS:GO) 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.
Grocery Outlet Holding's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
9.445
/
6.29
=
1.50
* 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.
Grocery Outlet Holding Graham Number Related Terms
Grocery Outlet Holding 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.
For the Grocery Stores subindustry, Grocery Outlet Holding'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.
Grocery Outlet Holding Price-to-Graham-Number vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Grocery Outlet Holding's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Grocery Outlet Holding'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.
Grocery Outlet Holding (GO) has a Graham Number of $6.29 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Grocery Outlet Holding and its competitors. This is 93% above median its historical median of 3.26. Over the past decade, Grocery Outlet Holding's Graham Number has ranged from 1.12 to 12.95. According to the industry distribution chart, Grocery Outlet Holding ranks #137 out of 238 companies in the Retail - Defensive industry, placing it in the top 57.6%.
Is Grocery Outlet Holding's Graham Number too high?
Grocery Outlet Holding's current Graham Number of $6.29 is 93% above median its 10-year median of 3.26. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 12.95. The Retail - Defensive industry median Graham Number is 1.28. Grocery Outlet Holding's value of $6.29 is 393.3% above this industry median. Based on the distribution chart, Grocery Outlet Holding ranks #137 out of 238 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Grocery Outlet Holding has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grocery Outlet Holding's Graham Number compare to NGVC and YSWY?
According to the Retail - Defensive industry distribution chart, Grocery Outlet Holding ranks #137 out of 238 companies for Graham Number. This places Grocery Outlet Holding in the lower half of its industry. The industry median Graham Number is 1.28. Grocery Outlet Holding's value of $6.29 is 393.3% above this benchmark. Historically, Grocery Outlet Holding's own Graham Number has ranged from 1.12 to 12.95 over the past decade. While the company's 10-year median is 3.26 vs. the industry median of 1.28, Grocery Outlet Holding 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 Retail - Defensive company?
The median Graham Number among Retail - Defensive companies is 1.28, based on 238 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. Grocery Outlet Holding's current Graham Number of $6.29 is 393.3% 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 Grocery Outlet Holding and its competitors. For the Retail - Defensive industry, the median Graham Number is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grocery Outlet Holding's current Graham Number is $6.29, which is 93% above median its own 10-year median of 3.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grocery Outlet Holding stock overvalued right now?
Based on GuruFocus' analysis, Grocery Outlet Holding (GO) is currently considered Possible Value Trap. The stock's GF Value™ is $19.38, compared to a current price of $9.45 — trading 51.3% below its estimated fair value. The current Graham Number is $6.29, which is 93% above median its 10-year median of 3.26 and 393.3% above the Retail - Defensive industry median of 1.28. Grocery Outlet Holding's overall GF Score™ is 65/100 with 4 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 Grocery Outlet Holding (GO), the current Graham Number is $6.29 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 Grocery Outlet Holding (GO) Overvalued in 2026?
Based on GuruFocus' analysis, Grocery Outlet Holding stock appears to be undervalued.
The current stock price of $9.45 is trading 51.3% below its estimated GF Value™ of $19.38.
GuruFocus considers Grocery Outlet Holding to be Possible Value Trap.
Key valuation signals for GO:
Graham Number: $6.29 (93% above median its 10-year median of 3.26)
GF Value™: $19.38 vs. price of $9.45 (51.3% below fair value)
Industry Position: 393.3% above the Retail - Defensive median (#137 of 238)
No single metric tells the full story. See the GO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grocery Outlet Holding Corp is a grocery store operator in the United States. It is a retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. The stores are run by Entrepreneurial independent operators which create a neighborhood feel through personalized customer service and a localized product offering.
65GF Score
Get the complete analysis for GO
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