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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.
The historical rank and industry rank for Al-Arabiya Real Estate Co KSC's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Al-Arabiya Real Estate Co KSC was 2.09. The lowest was 0.30. And the median was 0.48.
KUW:ARABREC's Price-to-Graham-Number is not ranked *
in the Real Estate industry.
Industry Median: 0.72 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) 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.
Al-Arabiya Real Estate Co KSC's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
0.178
/
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.
Al-Arabiya Real Estate Co KSC Graham Number Related Terms
Al-Arabiya Real Estate Co KSC 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.
KUW:ARABREC vs CBRE, BEKE, JLL: Graham Number Comparison
For the Real Estate Services subindustry, Al-Arabiya Real Estate Co KSC'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.
Al-Arabiya Real Estate Co KSC Price-to-Graham-Number vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Al-Arabiya Real Estate Co KSC'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.
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) has a Graham Number of KWDN/A as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Al-Arabiya Real Estate Co KSC and its competitors. According to the industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #999999 out of 1152 companies in the Real Estate industry.
Is Al-Arabiya Real Estate Co KSC's Graham Number too high?
Al-Arabiya Real Estate Co KSC's current Graham Number is KWDN/A. Based on the distribution chart, Al-Arabiya Real Estate Co KSC ranks #999999 out of 1152 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Al-Arabiya Real Estate Co KSC has a GF Score™ of 4/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Arabiya Real Estate Co KSC's Graham Number compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #999999 out of 1152 companies for Graham Number. This places Al-Arabiya Real Estate Co KSC in the lower half of its industry. The industry median Graham Number is 0.72. 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 Real Estate company?
The median Graham Number among Real Estate companies is 0.72, based on 1,152 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 Al-Arabiya Real Estate Co KSC and its competitors. For the Real Estate industry, the median Graham Number is 0.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Arabiya Real Estate Co KSC's current Graham Number is KWDN/A. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Arabiya Real Estate Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC (KUW:ARABREC) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.07, compared to a current price of KWD0.18 — trading 154.3% above its estimated fair value. The current Graham Number is KWDN/A. Al-Arabiya Real Estate Co KSC's overall GF Score™ is 4/100 with 6 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC), the current Graham Number is KWDN/A 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC stock appears to be overvalued.
The current stock price of KWD0.18 is trading 154.3% above its estimated GF Value™ of KWD0.07.
GuruFocus considers Al-Arabiya Real Estate Co KSC to be Significantly Overvalued.
Key valuation signals for KUW:ARABREC:
Graham Number: KWDN/A
GF Value™: KWD0.07 vs. price of KWD0.18 (154.3% above fair value)
No single metric tells the full story. See the KUW:ARABREC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.
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