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 McDonald's Holdings Co (Japan)'s Graham Number or its related term are showing as below:
MDNDF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.81 Med: 2.3 Max: 3.53
Current: 2.07
During the past 13 years, the highest Price to Graham Number ratio of McDonald's Holdings Co (Japan) was 3.53. The lowest was 1.81. And the median was 2.30.
MDNDF's Price-to-Graham-Number is ranked worse than 64.71% of 204
companies
in the Restaurants industry
Industry Median: 1.59
vs MDNDF: 2.07
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
McDonald's Holdings Co (Japan) (OTCPK:MDNDF) 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.
McDonald's Holdings Co (Japan)'s Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
42.00
/
23.96
=
1.75
* 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.
McDonald's Holdings Co (Japan) Graham Number Related Terms
McDonald's Holdings Co (Japan) 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.
McDonald's Holdings Co (Japan) Graham Number Chart
For the Restaurants subindustry, McDonald's Holdings Co (Japan)'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.
McDonald's Holdings Co (Japan) Price-to-Graham-Number vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's Holdings Co (Japan)'s Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where McDonald's Holdings Co (Japan)'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.
McDonald's Holdings Co (Japan) (MDNDF) has a Graham Number of $23.14 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on McDonald's Holdings Co (Japan) and its competitors. This is 906% above median its historical median of 2.30. Over the past decade, McDonald's Holdings Co (Japan)'s Graham Number has ranged from 1.81 to 3.53. According to the industry distribution chart, McDonald's Holdings Co (Japan) ranks #132 out of 204 companies in the Restaurants industry, placing it in the top 64.7%.
Is McDonald's Holdings Co (Japan)'s Graham Number too high?
McDonald's Holdings Co (Japan)'s current Graham Number of $23.14 is 906% above median its 10-year median of 2.30. Over the past 10 years, this metric has ranged from a low of 1.81 to a high of 3.53. The Restaurants industry median Graham Number is 1.59. McDonald's Holdings Co (Japan)'s value of $23.14 is 1355.3% above this industry median. Based on the distribution chart, McDonald's Holdings Co (Japan) ranks #132 out of 204 companies in the Restaurants industry, which is below the industry midpoint. Overall, McDonald's Holdings Co (Japan) has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's Holdings Co (Japan)'s Graham Number compare to MCD and SBUX?
According to the Restaurants industry distribution chart, McDonald's Holdings Co (Japan) ranks #132 out of 204 companies for Graham Number. This places McDonald's Holdings Co (Japan) in the lower half of its industry. The industry median Graham Number is 1.59. McDonald's Holdings Co (Japan)'s value of $23.14 is 1355.3% above this benchmark. Historically, McDonald's Holdings Co (Japan)'s own Graham Number has ranged from 1.81 to 3.53 over the past decade. While the company's 10-year median is 2.30 vs. the industry median of 1.59, McDonald's Holdings Co (Japan) 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 Restaurants company?
The median Graham Number among Restaurants companies is 1.59, based on 204 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. McDonald's Holdings Co (Japan)'s current Graham Number of $23.14 is 1355.3% 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 McDonald's Holdings Co (Japan) and its competitors. For the Restaurants industry, the median Graham Number is 1.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's Holdings Co (Japan)'s current Graham Number is $23.14, which is 906% above median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's Holdings Co (Japan) stock overvalued right now?
McDonald's Holdings Co (Japan) (MDNDF) has a current Graham Number of $23.14. The stock's GF Value™ is $35.69, compared to a current price of $42.00 — trading 17.7% above its estimated fair value. The current Graham Number is $23.14, which is 906% above median its 10-year median of 2.30 and 1355.3% above the Restaurants industry median of 1.59. McDonald's Holdings Co (Japan)'s overall GF Score™ is 74/100 with 7 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 McDonald's Holdings Co (Japan) (MDNDF), the current Graham Number is $23.14 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 McDonald's Holdings Co (Japan) (MDNDF) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) stock appears to be overvalued.
The current stock price of $42.00 is trading 17.7% above its estimated GF Value™ of $35.69.
Key valuation signals for MDNDF:
Graham Number: $23.14 (906% above median its 10-year median of 2.30)
GF Value™: $35.69 vs. price of $42.00 (17.7% above fair value)
Industry Position: 1355.3% above the Restaurants median (#132 of 204)
No single metric tells the full story. See the MDNDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's Holdings Co (Japan) Business Description
McDonald's Holdings Co (Japan) Ltd has a license to operate McDonald's fast-food restaurants in Japan. It is engaged in the operation and management of hamburger restaurant chains under the McDonald's brand. The company pays royalties for licensed rights and, in Japan, provides sub-licenses for its know-how and trademarks to franchisees operating its franchise restaurants, from whom it earns royalty income.
74GF Score
Get the complete analysis for MDNDF
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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