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 (2026-07-04), the stock price of Applied Digital is CHF27.30. Applied Digital's graham number for the quarter that ended in Feb. 2026 was CHFN/A. Therefore, Applied Digital's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Applied Digital's Graham Number or its related term are showing as below:
XSWX:APLD's Price-to-Graham-Number is not ranked *
in the Software industry.
Industry Median: 1.81 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Applied Digital (XSWX:APLD) 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.
Applied Digital's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Feb. 2026 )
=
27.30
/
N/A
=
N/A
* 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.
Applied Digital Graham Number Related Terms
Applied Digital Graham Number Historical Data
* Premium members only.
The historical data trend for Applied Digital'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.
For the Information Technology Services subindustry, Applied Digital'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.
Applied Digital Price-to-Graham-Number vs Software Industry
For the Software industry and Technology sector, Applied Digital's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Applied Digital'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.
Applied Digital (XSWX:APLD) has a Graham Number of CHFN/A as of Feb. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #999999 out of 1465 companies in the Software industry.
Is Applied Digital's Graham Number too high?
Applied Digital's current Graham Number is CHFN/A. Based on the distribution chart, Applied Digital ranks #999999 out of 1465 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Graham Number compare to ?
According to the Software industry distribution chart, Applied Digital ranks #999999 out of 1465 companies for Graham Number. This places Applied Digital in the lower half of its industry. The industry median Graham Number is 1.81. 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 1.81, based on 1,465 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 Applied Digital and its competitors. For the Software 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. Applied Digital's current Graham Number is CHFN/A. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Graham Number of CHFN/A. The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Graham Number is CHFN/A. Applied Digital's overall GF Score™ is 38/100 with 7 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 Applied Digital (XSWX:APLD), the current Graham Number is CHFN/A as of Feb. 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 Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Graham Number: CHFN/A
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
38GF Score
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