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Alkem LaboratoriesNSE:ALKEM -1.74%97 Graham Number is ₹2,214.26 as of Mar. 2026, which is 100% below its 10-year median of 2.49. GuruFocus rates NSE:ALKEM with a GF Score™ of 97/100 and a GF Value™ of ₹6,102.44 (Fairly Valued). Among 604 Drug Manufacturers companies, Alkem Laboratories ranks worse than 72.02% 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 (2026-08-07), the stock price of Alkem Laboratories is ₹5597.50. Alkem Laboratories's graham number for the quarter that ended in Mar. 2026 was ₹2,214.26. Therefore, Alkem Laboratories's Price to Graham Number ratio for today is 2.53.
The historical rank and industry rank for Alkem Laboratories's Graham Number or its related term are showing as below:
NSE:ALKEM'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.18 Med: 2.49 Max: 2.96
Current: 2.53
During the past 13 years, the highest Price to Graham Number ratio of Alkem Laboratories was 2.96. The lowest was 2.18. And the median was 2.49.
NSE:ALKEM's Price-to-Graham-Number is ranked worse than 72.02% of 604
companies
in the Drug Manufacturers industry
Industry Median: 1.545
vs NSE:ALKEM: 2.53
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Alkem Laboratories (NSE:ALKEM) 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.
Alkem Laboratories's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
5597.50
/
2,214.26
=
2.53
* 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.
Alkem Laboratories Graham Number Related Terms
Alkem Laboratories Graham Number Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories'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 Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories'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.
Alkem Laboratories Price-to-Graham-Number vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories'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.
Alkem Laboratories (NSE:ALKEM) has a Graham Number of ₹2,214.26 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Alkem Laboratories and its competitors. This is 88826% above median its historical median of 2.49. Over the past decade, Alkem Laboratories' Graham Number has ranged from 2.18 to 2.96. According to the industry distribution chart, Alkem Laboratories ranks #435 out of 604 companies in the Drug Manufacturers industry, placing it in the top 72%.
Is Alkem Laboratories' Graham Number too high?
Alkem Laboratories' current Graham Number of ₹2,214.26 is 88826% above median its 10-year median of 2.49. Over the past 10 years, this metric has ranged from a low of 2.18 to a high of 2.96. Based on the distribution chart, Alkem Laboratories ranks #435 out of 604 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Alkem Laboratories has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' Graham Number compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #435 out of 604 companies for Graham Number. This places Alkem Laboratories in the lower half of its industry. The industry median Graham Number is 1.55. Historically, Alkem Laboratories' own Graham Number has ranged from 2.18 to 2.96 over the past decade. 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 Drug Manufacturers company?
The median Graham Number among Drug Manufacturers companies is 1.55, based on 604 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. 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 Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median Graham Number is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current Graham Number is ₹2,214.26, which is 88826% above median its own 10-year median of 2.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,102.44, compared to a current price of ₹5,597.50 — trading 8.3% below its estimated fair value. The current Graham Number is ₹2,214.26, which is 88826% above median its 10-year median of 2.49. Alkem Laboratories' overall GF Score™ is 97/100. 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 Alkem Laboratories (NSE:ALKEM), the current Graham Number is ₹2,214.26 as of Mar. 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 Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?
Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued.
The current stock price of ₹5,597.50 is trading 8.3% below its estimated GF Value™ of ₹6,102.44.
GuruFocus considers Alkem Laboratories to be Fairly Valued.
Key valuation signals for NSE:ALKEM:
Graham Number: ₹2,214.26 (88826% above median its 10-year median of 2.49)
GF Value™: ₹6,102.44 vs. price of ₹5,597.50 (8.3% below fair value)
No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
97GF Score
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