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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 (2026-08-27), the stock price of FFRI Security is 円5610.00. FFRI Security's graham number for the quarter that ended in Mar. 2026 was 円1,206.54. Therefore, FFRI Security's Price to Graham Number ratio for today is 4.82.
The historical rank and industry rank for FFRI Security's Graham Number or its related term are showing as below:
TSE:3692'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.99 Med: 4.95 Max: 17.63
Current: 4.82
During the past 13 years, the highest Price to Graham Number ratio of FFRI Security was 17.63. The lowest was 2.99. And the median was 4.95.
TSE:3692's Price-to-Graham-Number is ranked worse than 80.8% of 1484
companies
in the Software industry
Industry Median: 1.89
vs TSE:3692: 4.82
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
FFRI Security (TSE:3692) 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.
FFRI Security's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
5610.00
/
1,164.96
=
4.82
* 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.
FFRI Security Graham Number Related Terms
FFRI Security Graham Number Historical Data
* Premium members only.
The historical data trend for FFRI Security'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.
TSE:3692 vs QH, SHOP, UBER: Graham Number Comparison
For the Software - Application subindustry, FFRI Security'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.
FFRI Security Price-to-Graham-Number vs Software Industry
For the Software industry and Technology sector, FFRI Security's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where FFRI Security'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.
FFRI Security (TSE:3692) has a Graham Number of 円1,206.54 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on FFRI Security and its competitors. According to the industry distribution chart, FFRI Security ranks #1199 out of 1484 companies in the Software industry, placing it in the top 80.8%.
Is FFRI Security's Graham Number too high?
FFRI Security's current Graham Number is 円1,206.54. Based on the distribution chart, FFRI Security ranks #1199 out of 1484 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, FFRI Security has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FFRI Security's Graham Number compare to QH and SHOP?
According to the Software industry distribution chart, FFRI Security ranks #1199 out of 1484 companies for Graham Number. This places FFRI Security in the lower half of its industry. The industry median Graham Number is 1.89. 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 1.89, based on 1,484 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 FFRI Security and its competitors. For the Software industry, the median Graham Number is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FFRI Security's current Graham Number is 円1,206.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FFRI Security stock overvalued right now?
Based on GuruFocus' analysis, FFRI Security (TSE:3692) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,279.20, compared to a current price of 円5,610.00 — trading 31.1% above its estimated fair value. The current Graham Number is 円1,206.54. FFRI Security's overall GF Score™ is 87/100 with 2 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 FFRI Security (TSE:3692), the current Graham Number is 円1,206.54 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 FFRI Security (TSE:3692) Overvalued in 2026?
Based on GuruFocus' analysis, FFRI Security stock appears to be overvalued.
The current stock price of 円5,610.00 is trading 31.1% above its estimated GF Value™ of 円4,279.20.
GuruFocus considers FFRI Security to be Significantly Overvalued.
Key valuation signals for TSE:3692:
Graham Number: 円1,206.54
GF Value™: 円4,279.20 vs. price of 円5,610.00 (31.1% above fair value)
No single metric tells the full story. See the TSE:3692 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FFRI Security Inc is engaged in providing computer security research, consulting, information provision, education, network system research, computer software and computer program planning, development, sales, leasing, maintenance, management, operation, and the acquisition, transfer, lending, and management of related property right such as copyrights, patent rights, utility model rights, trademark rights, and design rights.
87GF Score
Get the complete analysis for TSE:3692
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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