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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.
NFJ's Price-to-Graham-Number is ranked better than 56.2% of 1169
companies
in the Asset Management industry
Industry Median: 0.71
vs NFJ: 0.65
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Virtus Dividend, Interest & Premium Strategy Fund (NYSE:NFJ) 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.
Virtus Dividend, Interest & Premium Strategy Fund's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jan. 2026 )
=
15.01
/
23.03
=
0.65
* 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.
Virtus Dividend, Interest & Premium Strategy Fund Graham Number Related Terms
Virtus Dividend, Interest & Premium Strategy Fund 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.
Virtus Dividend, Interest & Premium Strategy Fund Graham Number Chart
Virtus Dividend, Interest & Premium Strategy Fund Annual Data
For the Asset Management subindustry, Virtus Dividend, Interest & Premium Strategy Fund'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.
Virtus Dividend, Interest & Premium Strategy Fund Price-to-Graham-Number vs Asset Management Industry
* 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.
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) has a Graham Number of $23.03 as of Jan. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Virtus Dividend, Interest & Premium Strategy Fund and its competitors. This is 4013% above median its historical median of 0.56. Over the past decade, Virtus Dividend, Interest & Premium Strategy Fund's Graham Number has ranged from 0.54 to 0.68. According to the industry distribution chart, Virtus Dividend, Interest & Premium Strategy Fund ranks #512 out of 1169 companies in the Asset Management industry, placing it in the top 43.8%.
Is Virtus Dividend, Interest & Premium Strategy Fund's Graham Number too high?
Virtus Dividend, Interest & Premium Strategy Fund's current Graham Number of $23.03 is 4013% above median its 10-year median of 0.56. Over the past 10 years, this metric has ranged from a low of 0.54 to a high of 0.68. The Asset Management industry median Graham Number is 0.71. Virtus Dividend, Interest & Premium Strategy Fund's value of $23.03 is 3143.7% above this industry median. Based on the distribution chart, Virtus Dividend, Interest & Premium Strategy Fund ranks #512 out of 1169 companies in the Asset Management industry, which is above the industry midpoint. Overall, Virtus Dividend, Interest & Premium Strategy Fund has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Virtus Dividend, Interest & Premium Strategy Fund's Graham Number compare to QQQX and HYT?
According to the Asset Management industry distribution chart, Virtus Dividend, Interest & Premium Strategy Fund ranks #512 out of 1169 companies for Graham Number. This puts Virtus Dividend, Interest & Premium Strategy Fund in the upper half of its industry. The industry median Graham Number is 0.71. Virtus Dividend, Interest & Premium Strategy Fund's value of $23.03 is 3143.7% above this benchmark. Historically, Virtus Dividend, Interest & Premium Strategy Fund's own Graham Number has ranged from 0.54 to 0.68 over the past decade. While the company's 10-year median is 0.56 vs. the industry median of 0.71, Virtus Dividend, Interest & Premium Strategy Fund 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 Asset Management company?
The median Graham Number among Asset Management companies is 0.71, based on 1,169 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. Virtus Dividend, Interest & Premium Strategy Fund's current Graham Number of $23.03 is 3143.7% 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 Virtus Dividend, Interest & Premium Strategy Fund and its competitors. For the Asset Management industry, the median Graham Number is 0.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virtus Dividend, Interest & Premium Strategy Fund's current Graham Number is $23.03, which is 4013% above median its own 10-year median of 0.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virtus Dividend, Interest & Premium Strategy Fund stock overvalued right now?
Based on GuruFocus' analysis, Virtus Dividend, Interest & Premium Strategy Fund (NFJ) is currently considered Modestly Undervalued. The stock's GF Value™ is $19.40, compared to a current price of $15.01 — trading 22.6% below its estimated fair value. The current Graham Number is $23.03, which is 4013% above median its 10-year median of 0.56 and 3143.7% above the Asset Management industry median of 0.71. Virtus Dividend, Interest & Premium Strategy Fund's overall GF Score™ is 61/100 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 Virtus Dividend, Interest & Premium Strategy Fund (NFJ), the current Graham Number is $23.03 as of Jan. 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 Virtus Dividend, Interest & Premium Strategy Fund (NFJ) Overvalued in 2026?
Based on GuruFocus' analysis, Virtus Dividend, Interest & Premium Strategy Fund stock appears to be undervalued.
The current stock price of $15.01 is trading 22.6% below its estimated GF Value™ of $19.40.
GuruFocus considers Virtus Dividend, Interest & Premium Strategy Fund to be Modestly Undervalued.
Key valuation signals for NFJ:
Graham Number: $23.03 (4013% above median its 10-year median of 0.56)
GF Value™: $19.40 vs. price of $15.01 (22.6% below fair value)
Industry Position: 3143.7% above the Asset Management median (#512 of 1169)
No single metric tells the full story. See the NFJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virtus Dividend, Interest & Premium Strategy Fund Business Description
Virtus Dividend, Interest & Premium Strategy Fund is a Massachusetts-based business trust. The primary investment objective of the company is to seek current income and gains, with a secondary objective of long-term capital appreciation. It pursues its investment objectives by investing in a diversified portfolio of dividend-paying common stocks and income-producing convertible securities.
61GF Score
Get the complete analysis for NFJ
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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