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Karat PackagingKRT -0.07%80 Graham Number is $22.08 as of Jun. 2026, which is 1315% above its 10-year median of 1.56. GuruFocus rates KRT with a GF Score™ of 80/100 and a GF Value™ of $31.36 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 298 Packaging & Containers companies, Karat Packaging ranks worse than 79.19% 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 (2026-08-13), the stock price of Karat Packaging is $48.225. Karat Packaging's graham number for the quarter that ended in Jun. 2026 was $22.08. Therefore, Karat Packaging's Price to Graham Number ratio for today is 2.18.
The historical rank and industry rank for Karat Packaging's Graham Number or its related term are showing as below:
KRT'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.88 Med: 1.56 Max: 2.35
Current: 2.18
During the past 9 years, the highest Price to Graham Number ratio of Karat Packaging was 2.35. The lowest was 0.88. And the median was 1.56.
KRT's Price-to-Graham-Number is ranked worse than 79.19% of 298
companies
in the Packaging & Containers industry
Industry Median: 1.025
vs KRT: 2.18
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Karat Packaging (NAS:KRT) 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.
Karat Packaging's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
48.225
/
22.08
=
2.18
* 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.
Karat Packaging Graham Number Related Terms
Karat Packaging Graham Number Historical Data
* Premium members only.
The historical data trend for Karat Packaging'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 Packaging & Containers subindustry, Karat Packaging'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.
Karat Packaging Price-to-Graham-Number vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Karat Packaging'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.
Karat Packaging (KRT) has a Graham Number of $22.08 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Karat Packaging and its competitors. This is 1315% above median its historical median of 1.56. Over the past decade, Karat Packaging's Graham Number has ranged from 0.88 to 2.35. According to the industry distribution chart, Karat Packaging ranks #236 out of 298 companies in the Packaging & Containers industry, placing it in the top 79.2%.
Is Karat Packaging's Graham Number too high?
Karat Packaging's current Graham Number of $22.08 is 1315% above median its 10-year median of 1.56. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 2.35. The Packaging & Containers industry median Graham Number is 1.03. Karat Packaging's value of $22.08 is 2054.1% above this industry median. Based on the distribution chart, Karat Packaging ranks #236 out of 298 companies in the Packaging & Containers industry, which is in the bottom quartile relative to peers. Overall, Karat Packaging has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Graham Number compare to PACK and MYE?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #236 out of 298 companies for Graham Number. This places Karat Packaging in the lower half of its industry. The industry median Graham Number is 1.03. Karat Packaging's value of $22.08 is 2054.1% above this benchmark. Historically, Karat Packaging's own Graham Number has ranged from 0.88 to 2.35 over the past decade. While the company's 10-year median is 1.56 vs. the industry median of 1.03, Karat Packaging 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 Packaging & Containers company?
The median Graham Number among Packaging & Containers companies is 1.03, based on 298 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. Karat Packaging's current Graham Number of $22.08 is 2054.1% 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 Karat Packaging and its competitors. For the Packaging & Containers industry, the median Graham Number is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Graham Number is $22.08, which is 1315% above median its own 10-year median of 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karat Packaging stock overvalued right now?
Based on GuruFocus' analysis, Karat Packaging (KRT) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.36, compared to a current price of $48.23 — trading 53.8% above its estimated fair value. The current Graham Number is $22.08, which is 1315% above median its 10-year median of 1.56 and 2054.1% above the Packaging & Containers industry median of 1.03. Karat Packaging's overall GF Score™ is 80/100 with 8 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 Karat Packaging (KRT), the current Graham Number is $22.08 as of Jun. 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 Karat Packaging (KRT) Overvalued in 2026?
Based on GuruFocus' analysis, Karat Packaging stock appears to be overvalued.
The current stock price of $48.23 is trading 53.8% above its estimated GF Value™ of $31.36.
GuruFocus considers Karat Packaging to be Significantly Overvalued.
Key valuation signals for KRT:
Graham Number: $22.08 (1315% above median its 10-year median of 1.56)
GF Value™: $31.36 vs. price of $48.23 (53.8% above fair value)
Industry Position: 2054.1% above the Packaging & Containers median (#236 of 298)
No single metric tells the full story. See the KRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karat Packaging Inc is a distributor and manufacturer of disposable foodservice products and related items, including containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, and janitorial supplies, available in plastic, paper, biopolymer-based, and other compostable forms. The Company focuses on environmentally friendly products and provides customized solutions including product development, design, printing, and logistics services. It serves customers through chains and distributors, retail, and e-commerce/online, and operates in the manufacturing and distribution of single-use food and beverage products, as well as specialty food and beverage products and restaurant and warehouse supplies.
80GF Score
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