What is the Graham Number?
A conservative fair-value ceiling from Benjamin Graham: the square root of (22.5 × earnings per share × book value per share).
The Graham Number combines a company's earnings and its balance sheet into one conservative price ceiling:
Graham Number = √(22.5 × EPS × Book Value Per Share)
The 22.5 comes from Graham's two limits multiplied together: a maximum P/E of 15 and a maximum price-to-book of 1.5. A stock trading below its Graham Number passes both of Graham's classic value tests at once.
Intrinsic Investor computes it exactly as published — no modifications — as one input among the valuation methods. It is deliberately conservative: fast-growing companies routinely trade far above their Graham Number without being overvalued, which is why it is one method in a weighted blend rather than a verdict on its own.
Source: Intrinsic Investor (https://www.intrinsic-investor.com)
This answer is for educational purposes only, not investment advice.