Melrose IndustriesMLSPF +3.80%67 Graham Number is $1.19 as of Dec. 2025, which is 82% below its 10-year median of 6.73. GuruFocus rates MLSPF with a GF Score™ of 67/100 and a GF Value™ of $8.49 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,198 Industrial Products companies, Melrose Industries ranks worse than 86.58% 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 (2026-07-05), the stock price of Melrose Industries is $6.55. Melrose Industries's graham number for the quarter that ended in Dec. 2025 was $1.19. Therefore, Melrose Industries's Price to Graham Number ratio for today is 5.49.
The historical rank and industry rank for Melrose Industries's Graham Number or its related term are showing as below:
MLSPF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 5.65 Med: 6.73 Max: 8.18
Current: 5.65
During the past 13 years, the highest Price to Graham Number ratio of Melrose Industries was 8.18. The lowest was 5.65. And the median was 6.73.
MLSPF's Price-to-Graham-Number is ranked worse than 86.58% of 2198
companies
in the Industrial Products industry
Industry Median: 1.85
vs MLSPF: 5.65
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Melrose Industries (OTCPK:MLSPF) 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.
Melrose Industries's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
6.55
/
1.19
=
5.49
* 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.
Melrose Industries Graham Number Related Terms
Melrose Industries Graham Number Historical Data
* Premium members only.
The historical data trend for Melrose Industries'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.
For the Specialty Industrial Machinery subindustry, Melrose Industries'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.
Melrose Industries Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Melrose Industries'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.
Melrose Industries (MLSPF) has a Graham Number of $1.19 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Melrose Industries and its competitors. This is 82% below median its historical median of 6.73. Over the past decade, Melrose Industries' Graham Number has ranged from 5.65 to 8.18. According to the industry distribution chart, Melrose Industries ranks #1903 out of 2198 companies in the Industrial Products industry, placing it in the top 86.6%.
Is Melrose Industries' Graham Number too high?
Melrose Industries' current Graham Number of $1.19 is 82% below median its 10-year median of 6.73. Over the past 10 years, this metric has ranged from a low of 5.65 to a high of 8.18. The Industrial Products industry median Graham Number is 1.85. Melrose Industries' value of $1.19 is 35.7% below this industry median. Based on the distribution chart, Melrose Industries ranks #1903 out of 2198 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Melrose Industries has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Melrose Industries' Graham Number compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #1903 out of 2198 companies for Graham Number. This places Melrose Industries in the lower half of its industry. The industry median Graham Number is 1.85. Melrose Industries' value of $1.19 is 35.7% below this benchmark. Historically, Melrose Industries' own Graham Number has ranged from 5.65 to 8.18 over the past decade. While the company's 10-year median is 6.73 vs. the industry median of 1.85, Melrose Industries has consistently been below 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 Industrial Products company?
The median Graham Number among Industrial Products companies is 1.85, based on 2,198 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. Melrose Industries's current Graham Number of $1.19 is 35.7% below 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 Melrose Industries and its competitors. For the Industrial Products industry, the median Graham Number is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current Graham Number is $1.19, which is 82% below median its own 10-year median of 6.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melrose Industries stock overvalued right now?
Based on GuruFocus' analysis, Melrose Industries (MLSPF) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.49, compared to a current price of $6.55 — trading 22.9% below its estimated fair value. The current Graham Number is $1.19, which is 82% below median its 10-year median of 6.73 and 35.7% below the Industrial Products industry median of 1.85. Melrose Industries' overall GF Score™ is 67/100 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 Melrose Industries (MLSPF), the current Graham Number is $1.19 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 Melrose Industries (MLSPF) Overvalued in 2026?
Based on GuruFocus' analysis, Melrose Industries stock appears to be undervalued.
The current stock price of $6.55 is trading 22.9% below its estimated GF Value™ of $8.49.
GuruFocus considers Melrose Industries to be Modestly Undervalued.
Key valuation signals for MLSPF:
Graham Number: $1.19 (82% below median its 10-year median of 6.73)
GF Value™: $8.49 vs. price of $6.55 (22.9% below fair value)
Industry Position: 35.7% below the Industrial Products median (#1903 of 2198)
No single metric tells the full story. See the MLSPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melrose Industries is a UK-based company that manufactures engines and structures products for all major OEMs across civil and defense markets. The company employs 13,032 people and generates approximately 75% of its revenue from the civil market, manufacturing engines and structures for major OEMs in both civil and defense sectors.In the civil market, the company operates in 90% of existing fleets in service and is a demonstrator partner in the GTF and CFM RISE next-generation engines for narrow-body aircraft.
67GF Score
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