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Hess Midstream LPHESM +0.93%64 Graham Number is $15.90 as of Mar. 2026, which is 720% above its 10-year median of 1.94. GuruFocus rates HESM with a GF Score™ of 64/100 and a GF Value™ of $24.38 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 610 Oil & Gas companies, Hess Midstream LP ranks worse than 85.08% 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 (2026-07-22), the stock price of Hess Midstream LP is $40.34. Hess Midstream LP's graham number for the quarter that ended in Mar. 2026 was $15.90. Therefore, Hess Midstream LP's Price to Graham Number ratio for today is 2.54.
The historical rank and industry rank for Hess Midstream LP's Graham Number or its related term are showing as below:
HESM'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.74 Med: 1.94 Max: 2.54
Current: 2.54
During the past 13 years, the highest Price to Graham Number ratio of Hess Midstream LP was 2.54. The lowest was 0.74. And the median was 1.94.
HESM's Price-to-Graham-Number is ranked worse than 85.08% of 610
companies
in the Oil & Gas industry
Industry Median: 1.1
vs HESM: 2.54
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Hess Midstream LP (NYSE:HESM) 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.
Hess Midstream LP's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
40.34
/
15.90
=
2.54
* 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.
Hess Midstream LP Graham Number Related Terms
Hess Midstream LP Graham Number Historical Data
* Premium members only.
The historical data trend for Hess Midstream LP'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.
HESM vs PAGP, GLNG, INSW: Graham Number Comparison
For the Oil & Gas Midstream subindustry, Hess Midstream LP'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.
Hess Midstream LP Price-to-Graham-Number vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP'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.
Hess Midstream LP (HESM) has a Graham Number of $15.90 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Hess Midstream LP and its competitors. This is 720% above median its historical median of 1.94. Over the past decade, Hess Midstream LP's Graham Number has ranged from 0.74 to 2.54. According to the industry distribution chart, Hess Midstream LP ranks #519 out of 610 companies in the Oil & Gas industry, placing it in the top 85.1%.
Is Hess Midstream LP's Graham Number too high?
Hess Midstream LP's current Graham Number of $15.90 is 720% above median its 10-year median of 1.94. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 2.54. The Oil & Gas industry median Graham Number is 1.10. Hess Midstream LP's value of $15.90 is 1345.5% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #519 out of 610 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Hess Midstream LP has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's Graham Number compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #519 out of 610 companies for Graham Number. This places Hess Midstream LP in the lower half of its industry. The industry median Graham Number is 1.10. Hess Midstream LP's value of $15.90 is 1345.5% above this benchmark. Historically, Hess Midstream LP's own Graham Number has ranged from 0.74 to 2.54 over the past decade. While the company's 10-year median is 1.94 vs. the industry median of 1.10, Hess Midstream LP 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 an Oil & Gas company?
The median Graham Number among Oil & Gas companies is 1.10, based on 610 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. Hess Midstream LP's current Graham Number of $15.90 is 1345.5% 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 Hess Midstream LP and its competitors. For the Oil & Gas industry, the median Graham Number is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current Graham Number is $15.90, which is 720% above median its own 10-year median of 1.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hess Midstream LP stock overvalued right now?
Based on GuruFocus' analysis, Hess Midstream LP (HESM) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.38, compared to a current price of $40.34 — trading 65.5% above its estimated fair value. The current Graham Number is $15.90, which is 720% above median its 10-year median of 1.94 and 1345.5% above the Oil & Gas industry median of 1.10. Hess Midstream LP's overall GF Score™ is 64/100 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 Hess Midstream LP (HESM), the current Graham Number is $15.90 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 Hess Midstream LP (HESM) Overvalued in 2026?
Based on GuruFocus' analysis, Hess Midstream LP stock appears to be overvalued.
The current stock price of $40.34 is trading 65.5% above its estimated GF Value™ of $24.38.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
Graham Number: $15.90 (720% above median its 10-year median of 1.94)
GF Value™: $24.38 vs. price of $40.34 (65.5% above fair value)
Industry Position: 1345.5% above the Oil & Gas median (#519 of 610)
No single metric tells the full story. See the HESM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hess Midstream LP is a fee-based, growth-oriented limited partnership that owns, operates, develops, and acquires a portfolio of midstream assets. The company provides fee-based services to Chevron Corporation and generates all of its revenue by charging fees for gathering, compressing, and processing natural gas, fractionating NGLs, gathering, terminaling, loading, and transporting crude oil and NGLs, storing and terminaling propane, and gathering and disposing of produced water. It operates through gathering, processing, and storage, and terminaling and export segments, with the gathering segment contributing the maximum share of revenue and comprising natural gas gathering and compression, as well as crude oil gathering and produced water gathering and disposal assets.
64GF Score
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