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Merchants Financial GroupMFGI 49 Graham Number is $48.71 as of Jun. 2026, which is 8018% above its 10-year median of 0.60. GuruFocus rates MFGI with a GF Score™ of 49/100 and a GF Value™ of $28.33 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,432 Banks companies, Merchants Financial Group ranks better than 58.1% 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.
Merchants Financial Group (OTCPK:MFGI) 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.
Merchants Financial Group's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
41.35
/
48.71
=
0.85
* 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.
Merchants Financial Group Graham Number Related Terms
Merchants Financial Group 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.
MFGI vs BFCC, TSBK, MSBC: Graham Number Comparison
For the Banks - Regional subindustry, Merchants Financial Group'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.
Merchants Financial Group Price-to-Graham-Number vs Banks Industry
For the Banks industry and Financial Services sector, Merchants Financial Group's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Merchants Financial Group'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.
Merchants Financial Group (MFGI) has a Graham Number of $48.71 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Merchants Financial Group and its competitors. This is 8018% above median its historical median of 0.60. Over the past decade, Merchants Financial Group's Graham Number has ranged from 0.56 to 0.75. According to the industry distribution chart, Merchants Financial Group ranks #600 out of 1432 companies in the Banks industry, placing it in the top 41.9%.
Is Merchants Financial Group's Graham Number too high?
Merchants Financial Group's current Graham Number of $48.71 is 8018% above median its 10-year median of 0.60. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 0.75. The Banks industry median Graham Number is 0.80. Merchants Financial Group's value of $48.71 is 5988.8% above this industry median. Based on the distribution chart, Merchants Financial Group ranks #600 out of 1432 companies in the Banks industry, which is above the industry midpoint. Overall, Merchants Financial Group has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merchants Financial Group's Graham Number compare to BFCC and TSBK?
According to the Banks industry distribution chart, Merchants Financial Group ranks #600 out of 1432 companies for Graham Number. This puts Merchants Financial Group in the upper half of its industry. The industry median Graham Number is 0.80. Merchants Financial Group's value of $48.71 is 5988.8% above this benchmark. Historically, Merchants Financial Group's own Graham Number has ranged from 0.56 to 0.75 over the past decade. While the company's 10-year median is 0.60 vs. the industry median of 0.80, Merchants Financial Group 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 Banks company?
The median Graham Number among Banks companies is 0.80, based on 1,432 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. Merchants Financial Group's current Graham Number of $48.71 is 5988.8% 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 Merchants Financial Group and its competitors. For the Banks industry, the median Graham Number is 0.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merchants Financial Group's current Graham Number is $48.71, which is 8018% above median its own 10-year median of 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merchants Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Merchants Financial Group (MFGI) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.33, compared to a current price of $41.35 — trading 46% above its estimated fair value. The current Graham Number is $48.71, which is 8018% above median its 10-year median of 0.60 and 5988.8% above the Banks industry median of 0.80. Merchants Financial Group's overall GF Score™ is 49/100 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 Merchants Financial Group (MFGI), the current Graham Number is $48.71 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 Merchants Financial Group (MFGI) Overvalued in 2026?
Based on GuruFocus' analysis, Merchants Financial Group stock appears to be overvalued.
The current stock price of $41.35 is trading 46% above its estimated GF Value™ of $28.33.
GuruFocus considers Merchants Financial Group to be Significantly Overvalued.
Key valuation signals for MFGI:
Graham Number: $48.71 (8018% above median its 10-year median of 0.60)
GF Value™: $28.33 vs. price of $41.35 (46% above fair value)
Industry Position: 5988.8% above the Banks median (#600 of 1432)
No single metric tells the full story. See the MFGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merchants Financial Group Inc is a bank holding company. Through its banking subsidiary, it provides retail, commercial loans, and deposit services to individual as well as business customers. The various products and services offered by the Group include business credit cards, treasury management services, online and mobile banking services, different types of loans, checking accounts, saving accounts, digital wallet, military banking services, mortgage loans, etc. These services are offered through a network of branch offices and a leasing division across Winona, Goodview, Rushford, Lanesboro, St. Charles, Rochester, La Crescent, Caledonia, Spring Grove, and other locations in the USA.
49GF Score
Get the complete analysis for MFGI
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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