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 Innovative Industrial Properties's Graham Number or its related term are showing as below:
IIPR'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.6 Med: 1.48 Max: 4.94
Current: 0.85
During the past 10 years, the highest Price to Graham Number ratio of Innovative Industrial Properties was 4.94. The lowest was 0.60. And the median was 1.48.
IIPR's Price-to-Graham-Number is ranked worse than 60.66% of 732
companies
in the REITs industry
Industry Median: 0.74
vs IIPR: 0.85
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Innovative Industrial Properties (NYSE:IIPR) 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.
Innovative Industrial Properties's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
63.26
/
74.37
=
0.85
* 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.
Innovative Industrial Properties Graham Number Related Terms
Innovative Industrial Properties 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.
Innovative Industrial Properties Graham Number Chart
For the REIT - Industrial subindustry, Innovative Industrial Properties'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.
Innovative Industrial Properties Price-to-Graham-Number vs REITs Industry
For the REITs industry and Real Estate sector, Innovative Industrial Properties's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Innovative Industrial Properties'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.
Innovative Industrial Properties (IIPR) has a Graham Number of $74.37 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Innovative Industrial Properties and its competitors. This is 4925% above median its historical median of 1.48. Over the past decade, Innovative Industrial Properties' Graham Number has ranged from 0.60 to 4.94. According to the industry distribution chart, Innovative Industrial Properties ranks #444 out of 732 companies in the REITs industry, placing it in the top 60.7%.
Is Innovative Industrial Properties' Graham Number too high?
Innovative Industrial Properties' current Graham Number of $74.37 is 4925% above median its 10-year median of 1.48. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 4.94. The REITs industry median Graham Number is 0.74. Innovative Industrial Properties' value of $74.37 is 9950% above this industry median. Based on the distribution chart, Innovative Industrial Properties ranks #444 out of 732 companies in the REITs industry, which is below the industry midpoint. Overall, Innovative Industrial Properties has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Innovative Industrial Properties' Graham Number compare to SMA and ILPT?
According to the REITs industry distribution chart, Innovative Industrial Properties ranks #444 out of 732 companies for Graham Number. This places Innovative Industrial Properties in the lower half of its industry. The industry median Graham Number is 0.74. Innovative Industrial Properties' value of $74.37 is 9950% above this benchmark. Historically, Innovative Industrial Properties' own Graham Number has ranged from 0.60 to 4.94 over the past decade. While the company's 10-year median is 1.48 vs. the industry median of 0.74, Innovative Industrial Properties 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 REITs company?
The median Graham Number among REITs companies is 0.74, based on 732 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. Innovative Industrial Properties's current Graham Number of $74.37 is 9950% 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 Innovative Industrial Properties and its competitors. For the REITs industry, the median Graham Number is 0.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Industrial Properties's current Graham Number is $74.37, which is 4925% above median its own 10-year median of 1.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innovative Industrial Properties stock overvalued right now?
Based on GuruFocus' analysis, Innovative Industrial Properties (IIPR) is currently considered Fairly Valued. The stock's GF Value™ is $64.70, compared to a current price of $63.26 — trading 2.2% below its estimated fair value. The current Graham Number is $74.37, which is 4925% above median its 10-year median of 1.48 and 9950% above the REITs industry median of 0.74. Innovative Industrial Properties' overall GF Score™ is 77/100 with 12 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 Innovative Industrial Properties (IIPR), the current Graham Number is $74.37 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 Innovative Industrial Properties (IIPR) Overvalued in 2026?
Based on GuruFocus' analysis, Innovative Industrial Properties stock appears to be undervalued.
The current stock price of $63.26 is trading 2.2% below its estimated GF Value™ of $64.70.
GuruFocus considers Innovative Industrial Properties to be Fairly Valued.
Key valuation signals for IIPR:
Graham Number: $74.37 (4925% above median its 10-year median of 1.48)
GF Value™: $64.70 vs. price of $63.26 (2.2% below fair value)
Industry Position: 9950% above the REITs median (#444 of 732)
No single metric tells the full story. See the IIPR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Innovative Industrial Properties Business Description
Innovative Industrial Properties Inc is a real estate investment trust focused on the acquisition, ownership and management of specialized industrial and commercial properties in the United States. Its properties are prominently leased to state-licensed operators for their regulated cannabis facilities. The company conducts its business through a traditional umbrella partnership real estate investment trust, or UPREIT structure, in which properties are owned by its Operating Partnership, directly or through subsidiaries. Its segments are: Cannabis Portfolio and Life Science Portfolio, with the majority of revenue coming from the Cannabis Portfolio segment, which involves acquiring, developing, and leasing real estate to regulated cannabis operators on long-term triple-net leases.
77GF Score
Get the complete analysis for IIPR
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