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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 (2026-07-18), the stock price of Grafton Group is $11.05. Grafton Group's graham number for the quarter that ended in Dec. 2025 was $N/A. Therefore, Grafton Group's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Grafton Group's Graham Number or its related term are showing as below:
GROUF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.66 Med: 1.47 Max: 3.69
Current: 1.08
During the past 13 years, the highest Price to Graham Number ratio of Grafton Group was 3.69. The lowest was 0.66. And the median was 1.47.
GROUF's Price-to-Graham-Number is not ranked
in the Industrial Distribution industry.
Industry Median: 0.96
vs GROUF: 1.08
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Grafton Group (OTCPK:GROUF) 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.
Grafton Group's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
11.05
/
N/A
=
N/A
* 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.
Grafton Group Graham Number Related Terms
Grafton Group Graham Number Historical Data
* Premium members only.
The historical data trend for Grafton Group'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.
GROUF vs FAST, GWW, FERG: Graham Number Comparison
For the Industrial Distribution subindustry, Grafton Group'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.
Grafton Group Price-to-Graham-Number vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Grafton Group'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.
Grafton Group (GROUF) has a Graham Number of $N/A as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Grafton Group and its competitors. Over the past decade, Grafton Group's Graham Number has ranged from 0.66 to 3.69.
Is Grafton Group's Graham Number too high?
Grafton Group's current Graham Number is $N/A. Over the past 10 years, this metric has ranged from a low of 0.66 to a high of 3.69.
How does Grafton Group's Graham Number compare to FAST and GWW?
Grafton Group's Graham Number of $N/A can be compared against companies in the Industrial Distribution industry. The industry median Graham Number is 0.96. Historically, Grafton Group's own Graham Number has ranged from 0.66 to 3.69 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 Distribution company?
The median Graham Number among Industrial Distribution companies is 0.96, based on 115 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 Grafton Group and its competitors. For the Industrial Distribution industry, the median Graham Number is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grafton Group's current Graham Number is $N/A. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grafton Group stock overvalued right now?
Based on GuruFocus' analysis, Grafton Group (GROUF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.59, compared to a current price of $11.05 — trading 15.2% above its estimated fair value. The current Graham Number is $N/A. 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 Grafton Group (GROUF), the current Graham Number is $N/A as of Dec. 2025. 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.
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional tradespeople engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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