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McGrath RentCorpMGRC +0.30%91 Graham Number is $70.41 as of Jun. 2026, which is 4091% above its 10-year median of 1.68. GuruFocus rates MGRC with a GF Score™ of 91/100 and a GF Value™ of $118.64 (Fairly Valued). The stock has 4 warning signs investors should review. Among 700 Business Services companies, McGrath RentCorp ranks worse than 67.86% 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.
As of today (2026-08-03), the stock price of McGrath RentCorp is $115.14. McGrath RentCorp's graham number for the quarter that ended in Jun. 2026 was $70.41. Therefore, McGrath RentCorp's Price to Graham Number ratio for today is 1.64.
The historical rank and industry rank for McGrath RentCorp's Graham Number or its related term are showing as below:
MGRC'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.87 Med: 1.68 Max: 2.5
Current: 1.64
During the past 13 years, the highest Price to Graham Number ratio of McGrath RentCorp was 2.50. The lowest was 0.87. And the median was 1.68.
MGRC's Price-to-Graham-Number is ranked worse than 67.86% of 700
companies
in the Business Services industry
Industry Median: 1.18
vs MGRC: 1.64
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
McGrath RentCorp (NAS:MGRC) 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.
McGrath RentCorp's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
115.14
/
70.41
=
1.64
* 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.
McGrath RentCorp Graham Number Related Terms
McGrath RentCorp Graham Number Historical Data
* Premium members only.
The historical data trend for McGrath RentCorp's Graham Number can be seen below:
* 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.
MGRC vs CTOS, VSTS, LIME: Graham Number Comparison
For the Rental & Leasing Services subindustry, McGrath RentCorp'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.
McGrath RentCorp Price-to-Graham-Number vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp'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.
McGrath RentCorp (MGRC) has a Graham Number of $70.41 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on McGrath RentCorp and its competitors. This is 4091% above median its historical median of 1.68. Over the past decade, McGrath RentCorp's Graham Number has ranged from 0.87 to 2.50. According to the industry distribution chart, McGrath RentCorp ranks #475 out of 700 companies in the Business Services industry, placing it in the top 67.9%.
Is McGrath RentCorp's Graham Number too high?
McGrath RentCorp's current Graham Number of $70.41 is 4091% above median its 10-year median of 1.68. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 2.50. The Business Services industry median Graham Number is 1.18. McGrath RentCorp's value of $70.41 is 5866.9% above this industry median. Based on the distribution chart, McGrath RentCorp ranks #475 out of 700 companies in the Business Services industry, which is below the industry midpoint. Overall, McGrath RentCorp has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McGrath RentCorp's Graham Number compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #475 out of 700 companies for Graham Number. This places McGrath RentCorp in the lower half of its industry. The industry median Graham Number is 1.18. McGrath RentCorp's value of $70.41 is 5866.9% above this benchmark. Historically, McGrath RentCorp's own Graham Number has ranged from 0.87 to 2.50 over the past decade. While the company's 10-year median is 1.68 vs. the industry median of 1.18, McGrath RentCorp 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 Business Services company?
The median Graham Number among Business Services companies is 1.18, based on 700 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. McGrath RentCorp's current Graham Number of $70.41 is 5866.9% 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 McGrath RentCorp and its competitors. For the Business Services industry, the median Graham Number is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current Graham Number is $70.41, which is 4091% above median its own 10-year median of 1.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGrath RentCorp stock overvalued right now?
Based on GuruFocus' analysis, McGrath RentCorp (MGRC) is currently considered Fairly Valued. The stock's GF Value™ is $118.64, compared to a current price of $115.14 — trading 3% below its estimated fair value. The current Graham Number is $70.41, which is 4091% above median its 10-year median of 1.68 and 5866.9% above the Business Services industry median of 1.18. McGrath RentCorp's overall GF Score™ is 91/100 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 McGrath RentCorp (MGRC), the current Graham Number is $70.41 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 McGrath RentCorp (MGRC) Overvalued in 2026?
Based on GuruFocus' analysis, McGrath RentCorp stock appears to be undervalued.
The current stock price of $115.14 is trading 3% below its estimated GF Value™ of $118.64.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
Graham Number: $70.41 (4091% above median its 10-year median of 1.68)
GF Value™: $118.64 vs. price of $115.14 (3% below fair value)
Industry Position: 5866.9% above the Business Services median (#475 of 700)
No single metric tells the full story. See the MGRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McGrath RentCorp is a diversified business-to-business rental company with three rental divisions: relocatable modular buildings, portable storage containers, and electronic test equipment. It comprises four reportable business segments, namely the Modular Building segment (Mobile Modular), which generates maximum revenue; the Portable Storage segment (Portable Storage); the Electronic Test Equipment segment (TRS-RenTelco); and its classroom manufacturing business (Enviroplex), which sells modular buildings used as classrooms in California. The company generates its revenues mainly from the rental of its equipment under operating leases, with sales of equipment occurring in the normal course of business.
91GF Score
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