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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.
As of today (2026-08-29), the stock price of Matrix IT is $34.53. Matrix IT's graham number for the quarter that ended in Jun. 2026 was $5.52. Therefore, Matrix IT's Price to Graham Number ratio for today is 6.25.
The historical rank and industry rank for Matrix IT's Graham Number or its related term are showing as below:
RMTHF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 3.3 Med: 10.65 Max: 45.08
Current: 6.76
During the past 13 years, the highest Price to Graham Number ratio of Matrix IT was 45.08. The lowest was 3.30. And the median was 10.65.
RMTHF's Price-to-Graham-Number is ranked worse than 90.68% of 1480
companies
in the Software industry
Industry Median: 1.88
vs RMTHF: 6.76
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
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.
Matrix IT's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
34.53
/
5.52
=
6.25
* 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.
Matrix IT Graham Number Related Terms
Matrix IT Graham Number Historical Data
* Premium members only.
The historical data trend for Matrix IT'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 Information Technology Services subindustry, Matrix IT'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.
Matrix IT Price-to-Graham-Number vs Software Industry
For the Software industry and Technology sector, Matrix IT's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Matrix IT'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.
Matrix IT (RMTHF) has a Graham Number of $5.52 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Matrix IT and its competitors. According to the industry distribution chart, Matrix IT ranks #1342 out of 1480 companies in the Software industry, placing it in the top 90.7%.
Is Matrix IT's Graham Number too high?
Matrix IT's current Graham Number is $5.52. The Software industry median Graham Number is 1.88. Matrix IT's value of $5.52 is 193.6% above this industry median. Based on the distribution chart, Matrix IT ranks #1342 out of 1480 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Matrix IT has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Matrix IT's Graham Number compare to IBM and ACN?
According to the Software industry distribution chart, Matrix IT ranks #1342 out of 1480 companies for Graham Number. This places Matrix IT in the lower half of its industry. The industry median Graham Number is 1.88. Matrix IT's value of $5.52 is 193.6% above this benchmark. 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 Software company?
The median Graham Number among Software companies is 1.88, based on 1,480 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. Matrix IT's current Graham Number of $5.52 is 193.6% 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 Matrix IT and its competitors. For the Software industry, the median Graham Number is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matrix IT's current Graham Number is $5.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matrix IT stock overvalued right now?
Based on GuruFocus' analysis, Matrix IT (RMTHF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.08, compared to a current price of $34.53 — trading 23% above its estimated fair value. The current Graham Number is $5.52 and 193.6% above the Software industry median of 1.88. Matrix IT's overall GF Score™ is 72/100 with 1 warning sign 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 Matrix IT (RMTHF), the current Graham Number is $5.52 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 Matrix IT (RMTHF) Overvalued in 2026?
Based on GuruFocus' analysis, Matrix IT stock appears to be overvalued.
The current stock price of $34.53 is trading 23% above its estimated GF Value™ of $28.08.
GuruFocus considers Matrix IT to be Modestly Overvalued.
Key valuation signals for RMTHF:
Graham Number: $5.52
GF Value™: $28.08 vs. price of $34.53 (23% above fair value)
Industry Position: 193.6% above the Software median (#1342 of 1480)
No single metric tells the full story. See the RMTHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matrix IT Ltd is an information technology company. It manages segments such as software solutions and value added services in Israel, software product marketing and support services, computer infrastructure and integration solutions, training and implementation, and software solutions and services in USA. Majority of its revenue is derived from its software solutions and services segment. The company's revenue is generated from its Israel operations.
72GF Score
Get the complete analysis for RMTHF
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