To calculate Graham number for stocks, follow these steps:
Calculate the earnings per share (EPS). It is the result of the net income divided by the outstanding shares.
Calculate the book value per share (BVPS). You will need to divide common shareholders' equity by the outstanding shares.
Get the square root of the result of 22.5 × BVPS × EPS. Also, you can use our handy Graham number calculator to make your life more simple.
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