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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 Cathay Financial Holding Co's Graham Number or its related term are showing as below:
LSE:CFHS'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.52 Med: 0.85 Max: 1.07
Current: 1.06
During the past 13 years, the highest Price to Graham Number ratio of Cathay Financial Holding Co was 1.07. The lowest was 0.52. And the median was 0.85.
LSE:CFHS's Price-to-Graham-Number is ranked worse than 60% of 425
companies
in the Insurance industry
Industry Median: 0.93
vs LSE:CFHS: 1.06
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Cathay Financial Holding Co (LSE:CFHS) 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.
Cathay Financial Holding Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
19.20
/
28.34
=
0.68
* 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.
Cathay Financial Holding Co Graham Number Related Terms
Cathay Financial Holding Co 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.
LSE:CFHS vs AFL, MET, PRU: Graham Number Comparison
For the Insurance - Life subindustry, Cathay Financial Holding Co'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.
Cathay Financial Holding Co Price-to-Graham-Number vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding Co'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.
Cathay Financial Holding Co (LSE:CFHS) has a Graham Number of $28.34 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Cathay Financial Holding Co and its competitors. This is 3234% above median its historical median of 0.85. Over the past decade, Cathay Financial Holding Co's Graham Number has ranged from 0.52 to 1.07. According to the industry distribution chart, Cathay Financial Holding Co ranks #255 out of 425 companies in the Insurance industry, placing it in the top 60%.
Is Cathay Financial Holding Co's Graham Number too high?
Cathay Financial Holding Co's current Graham Number of $28.34 is 3234% above median its 10-year median of 0.85. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 1.07. The Insurance industry median Graham Number is 0.93. Cathay Financial Holding Co's value of $28.34 is 2947.3% above this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #255 out of 425 companies in the Insurance industry, which is below the industry midpoint. Overall, Cathay Financial Holding Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's Graham Number compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #255 out of 425 companies for Graham Number. This places Cathay Financial Holding Co in the lower half of its industry. The industry median Graham Number is 0.93. Cathay Financial Holding Co's value of $28.34 is 2947.3% above this benchmark. Historically, Cathay Financial Holding Co's own Graham Number has ranged from 0.52 to 1.07 over the past decade. While the company's 10-year median is 0.85 vs. the industry median of 0.93, Cathay Financial Holding Co 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 Insurance company?
The median Graham Number among Insurance companies is 0.93, based on 425 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. Cathay Financial Holding Co's current Graham Number of $28.34 is 2947.3% 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 Cathay Financial Holding Co and its competitors. For the Insurance industry, the median Graham Number is 0.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current Graham Number is $28.34, which is 3234% above median its own 10-year median of 0.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current Graham Number of $28.34. The stock's GF Value™ is $15.45, compared to a current price of $19.20 — trading 24.3% above its estimated fair value. The current Graham Number is $28.34, which is 3234% above median its 10-year median of 0.85 and 2947.3% above the Insurance industry median of 0.93. Cathay Financial Holding Co's overall GF Score™ is 54/100 with 4 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 Cathay Financial Holding Co (LSE:CFHS), the current Graham Number is $28.34 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.
Is Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 24.3% above its estimated GF Value™ of $15.45.
Key valuation signals for LSE:CFHS:
Graham Number: $28.34 (3234% above median its 10-year median of 0.85)
GF Value™: $15.45 vs. price of $19.20 (24.3% above fair value)
Industry Position: 2947.3% above the Insurance median (#255 of 425)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
54GF Score
Get the complete analysis for LSE:CFHS
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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