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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 Essential Properties Realty Trust's Graham Number or its related term are showing as below:
STU:2OU'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.93 Med: 1.36 Max: 3.51
Current: 1.23
During the past 10 years, the highest Price to Graham Number ratio of Essential Properties Realty Trust was 3.51. The lowest was 0.93. And the median was 1.36.
STU:2OU's Price-to-Graham-Number is ranked worse than 77.5% of 729
companies
in the REITs industry
Industry Median: 0.72
vs STU:2OU: 1.23
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Essential Properties Realty Trust (STU:2OU) 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.
Essential Properties Realty Trust's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
26.23
/
21.31
=
1.23
* 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.
Essential Properties Realty Trust Graham Number Related Terms
Essential Properties Realty Trust 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.
Essential Properties Realty Trust Graham Number Chart
STU:2OU vs MAC, KRG, PECO: Graham Number Comparison
For the REIT - Retail subindustry, Essential Properties Realty Trust'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.
Essential Properties Realty Trust Price-to-Graham-Number vs REITs Industry
For the REITs industry and Real Estate sector, Essential Properties Realty Trust's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Essential Properties Realty Trust'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.
Essential Properties Realty Trust (STU:2OU) has a Graham Number of €21.31 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Essential Properties Realty Trust and its competitors. According to the industry distribution chart, Essential Properties Realty Trust ranks #565 out of 729 companies in the REITs industry, placing it in the top 77.5%.
Is Essential Properties Realty Trust's Graham Number too high?
Essential Properties Realty Trust's current Graham Number is €21.31. Based on the distribution chart, Essential Properties Realty Trust ranks #565 out of 729 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Essential Properties Realty Trust has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Essential Properties Realty Trust's Graham Number compare to MAC and KRG?
According to the REITs industry distribution chart, Essential Properties Realty Trust ranks #565 out of 729 companies for Graham Number. This places Essential Properties Realty Trust in the lower half of its industry. The industry median Graham Number is 0.72. 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 REITs company?
The median Graham Number among REITs companies is 0.72, based on 729 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 Essential Properties Realty Trust and its competitors. For the REITs industry, the median Graham Number is 0.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Properties Realty Trust's current Graham Number is €21.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Properties Realty Trust stock overvalued right now?
Based on GuruFocus' analysis, Essential Properties Realty Trust (STU:2OU) is currently considered Modestly Undervalued. The stock's GF Value™ is €30.11, compared to a current price of €26.23 — trading 12.9% below its estimated fair value. The current Graham Number is €21.31. Essential Properties Realty Trust's overall GF Score™ is 89/100 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 Essential Properties Realty Trust (STU:2OU), the current Graham Number is €21.31 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 Essential Properties Realty Trust (STU:2OU) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Properties Realty Trust stock appears to be undervalued.
The current stock price of €26.23 is trading 12.9% below its estimated GF Value™ of €30.11.
GuruFocus considers Essential Properties Realty Trust to be Modestly Undervalued.
Key valuation signals for STU:2OU:
Graham Number: €21.31
GF Value™: €30.11 vs. price of €26.23 (12.9% below fair value)
No single metric tells the full story. See the STU:2OU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essential Properties Realty Trust Inc is a real estate investment trust. It is an internally managed real estate company acquires, owns and manages single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. The Company generally invests in and leases freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities that are essential to the generation of the tenant's sales and profits.
89GF Score
Get the complete analysis for STU:2OU
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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