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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.
Standard Motor Products (NYSE:SMP) 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.
Standard Motor Products's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
37.01
/
26.90
=
1.38
* 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.
Standard Motor Products Graham Number Related Terms
Standard Motor Products 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 Auto Parts subindustry, Standard Motor Products'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.
Standard Motor Products Price-to-Graham-Number vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Standard Motor Products's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Standard Motor Products'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.
Standard Motor Products (SMP) has a Graham Number of $26.90 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Standard Motor Products and its competitors. According to the industry distribution chart, Standard Motor Products ranks #581 out of 991 companies in the Vehicles & Parts industry, placing it in the top 58.6%.
Is Standard Motor Products' Graham Number too high?
Standard Motor Products' current Graham Number is $26.90. The Vehicles & Parts industry median Graham Number is 1.15. Standard Motor Products' value of $26.90 is 2239.1% above this industry median. Based on the distribution chart, Standard Motor Products ranks #581 out of 991 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Standard Motor Products has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Standard Motor Products' Graham Number compare to FOXF and HYLN?
According to the Vehicles & Parts industry distribution chart, Standard Motor Products ranks #581 out of 991 companies for Graham Number. This places Standard Motor Products in the lower half of its industry. The industry median Graham Number is 1.15. Standard Motor Products' value of $26.90 is 2239.1% 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 Vehicles & Parts company?
The median Graham Number among Vehicles & Parts companies is 1.15, based on 991 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. Standard Motor Products's current Graham Number of $26.90 is 2239.1% 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 Standard Motor Products and its competitors. For the Vehicles & Parts industry, the median Graham Number is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Standard Motor Products's current Graham Number is $26.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Standard Motor Products stock overvalued right now?
Based on GuruFocus' analysis, Standard Motor Products (SMP) is currently considered Fairly Valued. The stock's GF Value™ is $40.72, compared to a current price of $37.01 — trading 9.1% below its estimated fair value. The current Graham Number is $26.90 and 2239.1% above the Vehicles & Parts industry median of 1.15. Standard Motor Products' overall GF Score™ is 85/100 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 Standard Motor Products (SMP), the current Graham Number is $26.90 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 Standard Motor Products (SMP) Overvalued in 2026?
Based on GuruFocus' analysis, Standard Motor Products stock appears to be undervalued.
The current stock price of $37.01 is trading 9.1% below its estimated GF Value™ of $40.72.
GuruFocus considers Standard Motor Products to be Fairly Valued.
Key valuation signals for SMP:
Graham Number: $26.90
GF Value™: $40.72 vs. price of $37.01 (9.1% below fair value)
Industry Position: 2239.1% above the Vehicles & Parts median (#581 of 991)
No single metric tells the full story. See the SMP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Standard Motor Products Inc is a manufacturer and distributor of premium automotive parts used in the maintenance, service, and repair of vehicles in the automotive aftermarket industry. It operates into four business segments namely Engineered Solutions, Vehicle Control, Nissens Automotive, and Temperature Control. It focuses on the original equipment and original equipment services markets, with a product lineup of replacement parts for engine management ignition, emission, and fuel systems, as well as temperature-control products. The company operates majorly in the United States, with additional sales in Canada, Europe, Asia, Mexico, and other Latin American countries.
85GF Score
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