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.
LTS:0JS0'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 3.57 Med: 8.29 Max: 26.77
Current: 4.28
During the past 13 years, the highest Price to Graham Number ratio of Kratos Defense & Security Solutions was 26.77. The lowest was 3.57. And the median was 8.29.
LTS:0JS0's Price-to-Graham-Number is ranked worse than 64.65% of 215
companies
in the Aerospace & Defense industry
Industry Median: 3.03
vs LTS:0JS0: 4.28
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Kratos Defense & Security Solutions (LTS:0JS0) 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.
Kratos Defense & Security Solutions's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
50.5171
/
11.77
=
4.29
* 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.
Kratos Defense & Security Solutions Graham Number Related Terms
Kratos Defense & Security Solutions 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.
Kratos Defense & Security Solutions Graham Number Chart
LTS:0JS0 vs SARO, PL, LOAR: Graham Number Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions'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.
Kratos Defense & Security Solutions Price-to-Graham-Number vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions'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.
Kratos Defense & Security Solutions (LTS:0JS0) has a Graham Number of $11.77 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Kratos Defense & Security Solutions and its competitors. This is 42% above median its historical median of 8.29. Over the past decade, Kratos Defense & Security Solutions' Graham Number has ranged from 3.57 to 26.77. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #139 out of 215 companies in the Aerospace & Defense industry, placing it in the top 64.7%.
Is Kratos Defense & Security Solutions' Graham Number too high?
Kratos Defense & Security Solutions' current Graham Number of $11.77 is 42% above median its 10-year median of 8.29. Over the past 10 years, this metric has ranged from a low of 3.57 to a high of 26.77. The Aerospace & Defense industry median Graham Number is 3.03. Kratos Defense & Security Solutions' value of $11.77 is 288.4% above this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #139 out of 215 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Graham Number compare to SARO and PL?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #139 out of 215 companies for Graham Number. This places Kratos Defense & Security Solutions in the lower half of its industry. The industry median Graham Number is 3.03. Kratos Defense & Security Solutions' value of $11.77 is 288.4% above this benchmark. Historically, Kratos Defense & Security Solutions' own Graham Number has ranged from 3.57 to 26.77 over the past decade. While the company's 10-year median is 8.29 vs. the industry median of 3.03, Kratos Defense & Security Solutions 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 Aerospace & Defense company?
The median Graham Number among Aerospace & Defense companies is 3.03, based on 215 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. Kratos Defense & Security Solutions's current Graham Number of $11.77 is 288.4% 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 Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median Graham Number is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Graham Number is $11.77, which is 42% above median its own 10-year median of 8.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kratos Defense & Security Solutions stock overvalued right now?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions (LTS:0JS0) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.39, compared to a current price of $50.52 — trading 77.9% above its estimated fair value. The current Graham Number is $11.77, which is 42% above median its 10-year median of 8.29 and 288.4% above the Aerospace & Defense industry median of 3.03. Kratos Defense & Security Solutions' overall GF Score™ is 71/100 with 5 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 Kratos Defense & Security Solutions (LTS:0JS0), the current Graham Number is $11.77 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 Kratos Defense & Security Solutions (LTS:0JS0) Overvalued in 2026?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions stock appears to be overvalued.
The current stock price of $50.52 is trading 77.9% above its estimated GF Value™ of $28.39.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
Graham Number: $11.77 (42% above median its 10-year median of 8.29)
GF Value™: $28.39 vs. price of $50.52 (77.9% above fair value)
Industry Position: 288.4% above the Aerospace & Defense median (#139 of 215)
No single metric tells the full story. See the LTS:0JS0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kratos Defense & Security Solutions Business Description
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.
71GF Score
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