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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.
The historical rank and industry rank for Selective Insurance Group's Graham Number or its related term are showing as below:
SIGI'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.78 Med: 1.2 Max: 1.58
Current: 0.9
During the past 13 years, the highest Price to Graham Number ratio of Selective Insurance Group was 1.58. The lowest was 0.78. And the median was 1.20.
SIGI's Price-to-Graham-Number is ranked better than 52.25% of 423
companies
in the Insurance industry
Industry Median: 0.92
vs SIGI: 0.90
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Selective Insurance Group (NAS:SIGI) 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.
Selective Insurance Group's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
92.21
/
101.92
=
0.90
* 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.
Selective Insurance Group Graham Number Related Terms
Selective Insurance Group 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.
For the Insurance - Property & Casualty subindustry, Selective Insurance Group'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.
Selective Insurance Group Price-to-Graham-Number vs Insurance Industry
For the Insurance industry and Financial Services sector, Selective Insurance Group's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Selective Insurance Group'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.
Selective Insurance Group (SIGI) has a Graham Number of $101.92 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Selective Insurance Group and its competitors. According to the industry distribution chart, Selective Insurance Group ranks #202 out of 423 companies in the Insurance industry, placing it in the top 47.8%.
Is Selective Insurance Group's Graham Number too high?
Selective Insurance Group's current Graham Number is $101.92. The Insurance industry median Graham Number is 0.92. Selective Insurance Group's value of $101.92 is 10978.3% above this industry median. Based on the distribution chart, Selective Insurance Group ranks #202 out of 423 companies in the Insurance industry, which is above the industry midpoint. Overall, Selective Insurance Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Selective Insurance Group's Graham Number compare to MCY and RLI?
According to the Insurance industry distribution chart, Selective Insurance Group ranks #202 out of 423 companies for Graham Number. This puts Selective Insurance Group in the upper half of its industry. The industry median Graham Number is 0.92. Selective Insurance Group's value of $101.92 is 10978.3% 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 an Insurance company?
The median Graham Number among Insurance companies is 0.92, based on 423 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. Selective Insurance Group's current Graham Number of $101.92 is 10978.3% 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 Selective Insurance Group and its competitors. For the Insurance industry, the median Graham Number is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Selective Insurance Group's current Graham Number is $101.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Selective Insurance Group stock overvalued right now?
Based on GuruFocus' analysis, Selective Insurance Group (SIGI) is currently considered Fairly Valued. The stock's GF Value™ is $97.80, compared to a current price of $92.21 — trading 5.7% below its estimated fair value. The current Graham Number is $101.92 and 10978.3% above the Insurance industry median of 0.92. Selective Insurance Group's overall GF Score™ is 82/100 with 6 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 Selective Insurance Group (SIGI), the current Graham Number is $101.92 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 Selective Insurance Group (SIGI) Overvalued in 2026?
Based on GuruFocus' analysis, Selective Insurance Group stock appears to be undervalued.
The current stock price of $92.21 is trading 5.7% below its estimated GF Value™ of $97.80.
GuruFocus considers Selective Insurance Group to be Fairly Valued.
Key valuation signals for SIGI:
Graham Number: $101.92
GF Value™: $97.80 vs. price of $92.21 (5.7% below fair value)
Industry Position: 10978.3% above the Insurance median (#202 of 423)
No single metric tells the full story. See the SIGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Selective Insurance Group Inc is a regional property-casualty insurer based in New Jersey, with its operations focused in the New York metropolitan area. The Company has four operating segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. Majority of revenue is gained from Standard Commercial Lines segment, which comprises of property and casualty insurance products and services provided in the standard marketplace to commercial enterprises, which are typically businesses, non-profit organizations, and local government agencies.
82GF Score
Get the complete analysis for SIGI
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