This graham number calculator takes the figures you already have and applies the relationship behind graham number calculations for you, giving book value per share, earnings per share and percentage diff from current price, common outstanding shares, common shareholders’ equity and ttm net income to common stockholders.
What Is the Graham Number Calculator?
The graham number calculator takes current price, common outstanding shares, common shareholders' equity and ttm net income to common stockholders and turns them into book value per share, earnings per share and percentage diff.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Graham Number Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with current price set to 10, common outstanding shares set to 5, common shareholders' equity set to 2, the calculator returns book value per share of 0.4, and earnings per share of 20, and graham number of 13.42. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out book value per share?
Enter current price, common outstanding shares, common shareholders' equity and ttm net income to common stockholders. The calculator then works through the relationship and reports book value per share, earnings per share and percentage diff.
What does the graham number actually calculate?
It takes current price, common outstanding shares, common shareholders' equity and ttm net income to common stockholders and converts them into book value per share, earnings per share and percentage diff using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter current price?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Do I have to fill in every field?
Only the fields a particular result depends on. If you leave one blank, the results that need it simply show a note instead of a number, and everything else still works.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.