The calculator applies the fixed screen √(22.5 × positive annual EPS × positive book value per share). It separates discount to the reference from upside relative to price, uses a chosen discount threshold, and labels the optional EPS × (8.5 + 2g) × 4.4/Y growth/yield illustration separately. All figures and yields are entered assumptions, not verified market data.
The origin of 22.5
The 22.5 constant equals 15 × 1.5. At the reference price the product P/E × P/B equals 22.5, but either individual ratio can exceed its historical reference. This algebra does not enforce both separate ceilings or establish economic value.
When the Graham Number works — and when it doesn't
Book value, financial-sector balance sheets, intangible assets, buybacks and accounting choices can materially change this screen. Positive inputs are necessary but do not prove applicability. Use matched annual earnings, compatible common share counts and stated reported or tangible book value; no automatic accounting normalization is performed.
Chosen discounts, accounting scenarios and the separate growth convention
The chosen threshold is GN × (1 − discount/100). Sensitivity uses actual per-share values with user-entered sweep limits; the other accounting input is illustrated at 0.8, 1 and 1.2 times its base. Manual normalized EPS and BVPS inherit the displayed annual period, currency and share definitions; their adjustments require your explanation.
The optional growth illustration preserves EPS × (8.5 + 2g) × 4.4/Y. Expanding its numerator gives 37.4 + 8.8g. The reproduced 1974 Graham talk prints 37.5 + 8.8G, a slightly different rounded convention. This tool does not present those expressions as identical, update Y automatically or treat either as a modern pricing model.