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Tactile Systems TechnologyTCMD -4.13%74 Graham Number is $10.89 as of Mar. 2026, which is 95% above its 10-year median of 5.59. GuruFocus rates TCMD with a GF Score™ of 74/100 and a GF Value™ of $18.76 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 402 Medical Devices & Instruments companies, Tactile Systems Technology ranks worse than 69.15% 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.
The historical rank and industry rank for Tactile Systems Technology's Graham Number or its related term are showing as below:
TCMD'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.98 Med: 5.59 Max: 17.81
Current: 2.56
During the past 13 years, the highest Price to Graham Number ratio of Tactile Systems Technology was 17.81. The lowest was 0.98. And the median was 5.59.
TCMD's Price-to-Graham-Number is ranked worse than 69.15% of 402
companies
in the Medical Devices & Instruments industry
Industry Median: 1.805
vs TCMD: 2.56
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Tactile Systems Technology (NAS:TCMD) 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.
Tactile Systems Technology's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
27.84
/
10.89
=
2.56
* 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.
Tactile Systems Technology Graham Number Related Terms
Tactile Systems Technology 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 Medical Devices subindustry, Tactile Systems Technology'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.
Tactile Systems Technology Price-to-Graham-Number vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Tactile Systems Technology's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Tactile Systems Technology'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.
Tactile Systems Technology (TCMD) has a Graham Number of $10.89 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Tactile Systems Technology and its competitors. This is 95% above median its historical median of 5.59. Over the past decade, Tactile Systems Technology's Graham Number has ranged from 0.98 to 17.81. According to the industry distribution chart, Tactile Systems Technology ranks #278 out of 402 companies in the Medical Devices & Instruments industry, placing it in the top 69.2%.
Is Tactile Systems Technology's Graham Number too high?
Tactile Systems Technology's current Graham Number of $10.89 is 95% above median its 10-year median of 5.59. Over the past 10 years, this metric has ranged from a low of 0.98 to a high of 17.81. The Medical Devices & Instruments industry median Graham Number is 1.81. Tactile Systems Technology's value of $10.89 is 503.3% above this industry median. Based on the distribution chart, Tactile Systems Technology ranks #278 out of 402 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Tactile Systems Technology has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tactile Systems Technology's Graham Number compare to SSII and BVS?
According to the Medical Devices & Instruments industry distribution chart, Tactile Systems Technology ranks #278 out of 402 companies for Graham Number. This places Tactile Systems Technology in the lower half of its industry. The industry median Graham Number is 1.81. Tactile Systems Technology's value of $10.89 is 503.3% above this benchmark. Historically, Tactile Systems Technology's own Graham Number has ranged from 0.98 to 17.81 over the past decade. While the company's 10-year median is 5.59 vs. the industry median of 1.81, Tactile Systems Technology has consistently been above the industry average. 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 Medical Devices & Instruments company?
The median Graham Number among Medical Devices & Instruments companies is 1.81, based on 402 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. Tactile Systems Technology's current Graham Number of $10.89 is 503.3% 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 Tactile Systems Technology and its competitors. For the Medical Devices & Instruments industry, the median Graham Number is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tactile Systems Technology's current Graham Number is $10.89, which is 95% above median its own 10-year median of 5.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tactile Systems Technology stock overvalued right now?
Based on GuruFocus' analysis, Tactile Systems Technology (TCMD) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.76, compared to a current price of $27.84 — trading 48.4% above its estimated fair value. The current Graham Number is $10.89, which is 95% above median its 10-year median of 5.59 and 503.3% above the Medical Devices & Instruments industry median of 1.81. Tactile Systems Technology's overall GF Score™ is 74/100 with 3 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 Tactile Systems Technology (TCMD), the current Graham Number is $10.89 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 Tactile Systems Technology (TCMD) Overvalued in 2026?
Based on GuruFocus' analysis, Tactile Systems Technology stock appears to be overvalued.
The current stock price of $27.84 is trading 48.4% above its estimated GF Value™ of $18.76.
GuruFocus considers Tactile Systems Technology to be Significantly Overvalued.
Key valuation signals for TCMD:
Graham Number: $10.89 (95% above median its 10-year median of 5.59)
GF Value™: $18.76 vs. price of $27.84 (48.4% above fair value)
Industry Position: 503.3% above the Medical Devices & Instruments median (#278 of 402)
No single metric tells the full story. See the TCMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tactile Systems Technology Inc is a medical technology company. The company is engaged in developing and providing medical devices for the treatment of chronic diseases. The firm's proprietary platform flexitouch system, provides a home-based solution for lymphedema patients. The entire system is another home solution for patients with chronic swelling and actitouch system for chronic venous insufficiency patients that may be worn throughout the day.
74GF Score
Get the complete analysis for TCMD
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