Graham Number Screener Excel: Deep Value Dashboard (June 2026)

Graham Number Screener Excel - if that is what you searched for, you are not looking for a one-liner that explains who Benjamin Graham was. You are looking for a working spreadsheet that ranks real US stocks against Graham's defensive ceiling, surfaces the names trading below their Graham Number, and lets you tune the criteria to your own risk tolerance. This guide ships exactly that: a premium dashboard-style template, walked through cell by cell, plus the market context for why a Graham-style screen matters again in June 2026.

The S&P 500 has been pulled higher by a narrow basket of mega-cap names for most of the last two years. Trailing PE multiples on the index sit comfortably above their long-run average. Mega-cap technology trades at multiples Benjamin Graham would have called speculative. At the same time, mature mid-cap industrials, healthcare names, and select consumer staples sit at single-digit PE ratios with healthy book values and dividend coverage. The dispersion is wide enough that a disciplined value screen actually has something to surface, even with broad indexes near record highs. This is exactly the environment a Graham Number Screener Excel template was designed for.

What is the Graham Number?

The Graham Number is a single-formula valuation ceiling proposed by Benjamin Graham in The Intelligent Investor. It says a defensive investor should not pay more than the square root of (22.5 times earnings per share times book value per share) for any common stock. The 22.5 multiplier is the product of Graham's two preferred maximums: a price to earnings ratio no greater than 15, and a price to book ratio no greater than 1.5. Multiplied together, they yield 22.5. When the current price trades below the resulting number, the stock has at least one form of margin of safety against the defensive investor's ceiling.

The formula in pure form:

Graham Number = SQRT(22.5 * EPS * Book Value Per Share)

Two notes. First, the formula requires positive EPS and positive book value per share. Companies losing money, or those with negative tangible equity from share repurchases, are disqualified by the math itself. Second, the Graham Number is a snapshot, not a forward valuation. It uses trailing earnings and the most recent balance sheet, not a discounted cash flow model.

Why a Graham Number screen matters in June 2026

The market regime that closed out 2025 and rolled into 2026 has three features that make a value-anchored screen unusually relevant:

1. Index concentration is at multi-decade extremes. The top ten names by weight in the S&P 500 control a share of the index that has not been seen since the late 1990s. When the broad measure is dominated by a small group trading at premium multiples, the average trailing PE of the index understates the cheapness available below the surface.
2. Mega-cap PE ratios are well above Graham's ceilings. Most of the AI-leveraged names trade at trailing PE ratios north of 30 and price-to-book ratios deep into double digits. They cannot pass any version of a Graham defensive screen, which is itself useful information for portfolio construction.
3. Older defensive names are quietly cheap. Healthcare, energy, certain telecom and utility names, several consumer staples laggards, and select financials trade at PE multiples below 15 and price to book ratios near or below 1.5. Some of them clear Graham's defensive checklist on their own. Most have not been a market story for years.

A Graham Number Screener Excel does not make a market call for you. It simply lets you separate the names that satisfy a conservative valuation ceiling from the names that do not, then layer your own judgment on top.

Snapshot - Graham screen results (illustrative, data as of 2026-06-12)

The table above is the kind of view the dashboard produces in seconds. Energy and Healthcare carry the deep-value flag right now. Consumer Staples and Industrials, despite their reputation as defensive sectors, look expensive on Graham's grid because brand value and intangible assets do not show up in book value. This is exactly the kind of nuance the screener forces you to confront.

How the Graham Number is built

The Graham Number formula is intentionally simple. Two inputs do the work: earnings per share and book value per share. Both are tied to audited financial statements rather than market sentiment, which is what gave Graham comfort. The multiplier of 22.5 is not a magic constant. It is the product of two independent valuation ceilings Graham defended in different chapters of The Intelligent Investor.

The first ceiling - a PE ratio of 15 - comes from Graham's observation that long-term earnings yields on stocks should rival the rate on AAA corporate bonds. A PE of 15 implies an earnings yield of 6.67 percent, which historically tracked high-quality corporate yields with a small risk premium. In a regime where the 10-year Treasury sits above 4 percent and AAA spreads add another 50 to 100 basis points, the math behind Graham's PE ceiling still holds: an earnings yield above 6.5 percent gives the equity investor a fair premium for taking on equity risk.

The second ceiling - a price to book ratio of 1.5 - comes from Graham's belief that the defensive investor should not pay more than 50 percent over tangible book value for the average business. He allowed exceptions when book value was depressed by share repurchases or accounting noise, but the 1.5 cap was his default. Multiply 15 by 1.5 and you get 22.5. Multiply 22.5 by EPS and BVPS and take the square root, and you get a single dollar figure: the maximum price a defensive investor should pay.

Margin of safety

Once you have the Graham Number for each ticker, the margin of safety is simply the discount of the current price to that ceiling:

Margin of Safety = (Graham Number - Current Price) / Current Price

A positive margin of safety means the stock trades below the ceiling. A 20 percent margin means the price would have to rise 20 percent to reach the Graham Number. Graham himself preferred a 33 percent margin (price at two-thirds of intrinsic value) for the defensive portfolio. Many modern value managers run with a 25 percent floor. The template lets you set the threshold yourself in the Inputs sheet.

What is inside the Graham Number Screener Excel template

The Graham Number Screener Excel template ships as two files: a Sample workbook with static values for one-time inspection, and a Template workbook with live MarketXLS formulas that refresh on demand. Both files carry the same 12-sheet layout designed to look and feel like a professional-grade research deck, not a free spreadsheet handout. Here is the full walkthrough.

1. Cover

A branded cover page with the workbook title, edition, data-as-of date, and a navigable table of contents. No data lives here. The Cover sheet exists for presentation polish - it is the first thing a client or colleague sees when you open the file in a meeting.

2. How To Use

Step-by-step tutorial that explains every input cell, every formula by name, and the recommended workflow. New users open this sheet first. It also catalogs every MarketXLS function the workbook calls, with one-line descriptions, so users know exactly which formulas they would need to rebuild any sheet from scratch.

3. Dashboard

The headline sheet. Six KPI tiles span the top: average margin of safety, deepest discount in the universe, average PE, average price to book, the composite value score, and the number of names passing the default screen. Below the tiles, a deep value leaderboard ranks the top 15 names by margin of safety with conditional formatting heatmaps on PE and price to book. Two embedded charts - sector average margin of safety and sorted PE distribution - sit alongside the data tables. Gridlines are hidden, the print area is set to landscape, and the entire sheet is designed to fit on one page when printed.

4. Inputs and Controls

The single source of truth for every downstream calculation. Yellow input cells with bold borders take seventeen parameters: selected scenario, max PE ratio, max P/B ratio, minimum current ratio, max debt to equity, minimum margin of safety, minimum market cap, portfolio size, weighting method, sector cap, EPS shock, book value shock, risk tolerance, three custom tickers for the comparison matrix, and benchmark index. Five data-validation dropdowns enforce valid entries on the scenario picker, weighting method, risk tier, and benchmark. Change any input and every other sheet updates instantly.

5. Graham Screener

The full 30-name screener. Each row carries ticker, company, sector, last price, EPS, book value per share, computed Graham Number, margin of safety, PE ratio, P/B ratio, ROE, current ratio, debt to equity, dividend yield, and a 0-100 composite value score. Color scales highlight cheap PE and P/B in green, low margin of safety in red, healthy current ratios in green, and the value score gets a data bar. In the Template version every metric is a live MarketXLS formula. In the Sample version each data cell carries a comment showing the underlying MarketXLS function that would produce it.

6. Scenario Analysis

A pass/fail matrix that runs seven preset screens against the same universe simultaneously: Strict Defensive (Graham 1973), Margin of Safety (Default), Deep Value Only, Moderate Value, Growth at Reasonable Price, Dividend + Value, and Quality + Value. Each ticker gets a colored PASS or FAIL cell under every scenario. A survivor count and hit rate appear at the bottom, along with a threshold definition table. The matrix shows immediately how strictness changes the universe: how many names survive a 15x PE cap, how many additional ones clear a 20x cap, and which sectors disappear when you require a 25 percent margin of safety.

7. Sector Valuation

The sector heatmap. Each of the nine sectors gets one row showing the count of constituents, average PE, average P/B, average margin of safety, average ROE, average debt to equity, average current ratio, and average value score. Conditional formatting applies a red-to-green gradient on every column according to whether high or low is desirable. An embedded horizontal bar chart visualizes sector average PE so users can see at a glance which corners of the market are cheap.

8. Margin of Safety Stress

The stress test sheet. Each ticker is run through six shock scenarios: EPS down 10 percent, EPS down 20 percent, EPS down 30 percent, book value down 10 percent, book value down 20 percent, and a combined 20 percent shock to both. The Graham Number is recomputed under each scenario and the new margin of safety is shown. Positions whose stressed margin of safety drops below zero are the ones most exposed if earnings disappoint or write-downs hit. Color scales make the breakdowns visible at a glance.

9. Portfolio Allocation

The position sizing sheet. The screener's survivors flow into a portfolio sleeve sized to the portfolio dollar amount entered on Inputs. Three weighting methods are presented side by side: equal weight, score weight (allocates more to higher composite scores), and yield weight (allocates more to higher dividend yields). A totals row at the bottom checks that weights sum to 100 percent. An embedded pie chart visualizes the score-weighted allocation with category labels and percentages.

10. Comparison Matrix

A side-by-side comparison of three user-selected tickers plus the benchmark index. Eighteen rows of metrics cover company name, sector, price, EPS, book value, Graham Number, margin of safety, PE, price to book, ROE, current ratio, debt to equity, dividend yield, beta, YTD return, value score, qualitative value label, and a colored pass/fail flag for Graham's defensive checklist. The pass/fail row paints green or red so the answer is impossible to miss.

11. Methodology

An eight-section explainer covering the Graham Number formula derivation, defensive investor criteria, universe selection, value score weighting, scenario thresholds, stress test design, data sources, and limitations. This sheet lifts the perceived value of the workbook from a black-box screener to a fully documented research artifact.

12. Glossary and Disclaimer

Definitions for every term the workbook uses, followed by a clear educational-only disclaimer. Useful when sharing the file with clients or colleagues unfamiliar with Graham's vocabulary.

Building the screener in Excel with MarketXLS

If you want to build a Graham Number screener from scratch rather than open the prebuilt template, the MarketXLS formulas you need are surprisingly few. Here is the working set:

=QM_Last("JNJ")                           -> Current price
=EarningsPerShare("JNJ")                  -> Trailing 12-month EPS
=BookValuePerShare("JNJ")                 -> Book value per share
=PERatio("JNJ")                           -> Price to earnings ratio
=PriceToBook("JNJ")                       -> Price to book ratio
=HF_CurrentRatio("JNJ")                   -> Current ratio
=TotalDebtToEquity("JNJ")                 -> Debt to equity ratio
=ReturnOnEquity("JNJ")                    -> Return on equity
=DividendYield("JNJ")                     -> Trailing 12-month dividend yield
=MarketCapitalization("JNJ")              -> Market cap in USD
=Sector("JNJ")                            -> GICS sector classification
=Beta("JNJ")                              -> Beta vs S&P 500
=ChangePercentYTD("JNJ")                  -> YTD price change

The Graham Number itself is a one-liner once you have EPS and BVPS in their own columns:

=IFERROR(SQRT(22.5 * EPS_cell * BVPS_cell), 0)

The margin of safety is another one-liner:

=IFERROR((Graham_Number_cell - Price_cell) / Price_cell, 0)

The IFERROR wrapper protects against negative EPS or BVPS, which would otherwise return a square-root domain error. Disqualified names get a zero in those columns and drop to the bottom of the value score ranking automatically.

For a more complete defensive screen, wrap the qualifying check in an AND formula that mirrors Graham's full checklist:

=AND(EPS>0, BVPS>0, PE<15, PB<1.5, CR>2, DE<1, MoS>0)

You can adjust the constants to match your scenario. The seven scenarios in the workbook each use a different combination of those caps and floors.

What about industries Graham would not have screened?

Banks, insurance companies, and pure REITs need different valuation lenses. For banks, book value matters but the price to book ratio interacts heavily with regulatory capital ratios and loan loss reserves - a price to tangible book ratio with a separate capital ratio overlay is more appropriate. For insurers, embedded value and combined ratio carry more weight than the Graham Number. For REITs, funds from operations replaces earnings per share entirely. The template excludes these names by design so the Graham Number stays meaningful.

Pure growth names with high R&D capitalization and very thin book values (think modern software companies) also struggle on Graham's grid. That does not mean they are overvalued in any absolute sense; it means Graham's formula does not capture their economics. The template includes a few such names in the universe so users can see why they screen as "Disqualified" or "Premium" rather than removing them silently.

Limitations of the Graham Number screen

The Graham Number has real limitations and they are worth naming explicitly so the screen is used as one input rather than the only one:

• It uses trailing data. EPS is trailing 12 months; book value is the most recent balance sheet date. Forward expectations are not part of the formula. A name with deteriorating earnings will look cheaper than it should until the trailing data catches up.
• It does not adjust for capital intensity. A capital-light business and a capital-heavy business with the same EPS and BVPS will show the same Graham Number, even though the capital-light business is worth more.
• It penalizes intangible-heavy business models. Brand value, R&D pipelines, customer relationships, network effects - none of these sit on the balance sheet. Companies whose moats are mostly intangible look expensive on price to book and so will tend to fail Graham's screen even when they are excellent businesses.
• It treats every dollar of earnings the same. Quality of earnings, accruals, working capital changes, and one-time items all get rolled into a single trailing EPS number.

The template addresses these limitations through layered views rather than ignoring them. The Comparison Matrix lets you put a Graham-style cheap name side by side with a quality-priced mega cap so the trade-off is visible. The scenario set includes Growth at Reasonable Price and Quality + Value so users can move beyond strict Graham defensiveness when the situation warrants. The methodology sheet states the limitations directly.

Download the Graham Number Screener Excel template

The Graham Number Screener Excel template is free to download today as a lead magnet. The design is the same as a paid product would carry: cover page, KPI dashboard, scenario analysis, stress test, sector heatmap, portfolio sleeve, and full methodology documentation.

Download the templates:

• - Pre-filled with current data, every cell carries a comment showing the underlying MarketXLS formula
• - Live formulas that refresh on demand

Open in Microsoft Excel 2016 or later. The Template version requires the MarketXLS add-in to be installed and active so the live formulas refresh. The Sample version is fully functional without any add-in.

Frequently asked questions

What is the Graham Number formula?

The Graham Number is calculated as the square root of (22.5 times earnings per share times book value per share). It represents the maximum price a defensive investor should pay for a stock according to Benjamin Graham. The 22.5 multiplier is derived from Graham's preferred maximum PE ratio of 15 multiplied by his preferred maximum price-to-book ratio of 1.5. In Excel notation: =SQRT(22.5 * EPS * BVPS).

Is the Graham Number still relevant today?

The Graham Number remains useful as one input among several. It is most relevant for mature, dividend-paying companies with positive earnings and meaningful tangible book value. It is least relevant for growth companies with significant intangible assets, financial institutions, and REITs. As a screening filter in a value-tilted portfolio it still earns its place; as a sole valuation method it does not.

What is a good margin of safety for the Graham Number?

Benjamin Graham himself recommended a 33 percent margin of safety, meaning the price should trade at no more than two-thirds of the Graham Number. Many modern value managers use a 25 percent floor. Strict defensive investors require at least a 20 percent buffer. The template lets you set this threshold yourself in the Inputs sheet so it adapts to your own risk tolerance.

Why do some companies have a negative Graham Number?

A negative Graham Number happens when earnings per share or book value per share is negative. The formula requires positive values for both inputs because the square root of a negative number is not a real number. Companies losing money or carrying negative tangible equity (often from aggressive buybacks or repeated write-downs) get disqualified by the math automatically.

Can I use the Graham Number for tech stocks?

You can run the formula on any stock with positive EPS and positive book value, including tech stocks. However, most modern tech companies will fail Graham's defensive screen because their book values are low relative to market cap. This is a known limitation of book-value-based valuation methods for intangible-heavy businesses. The template includes several tech names in the universe so you can see exactly how the screen treats them.

How is the value score in the template calculated?

The value score is a 0-100 composite that blends five components: margin of safety to Graham Number (40 percent weight), low PE ratio (20 percent), low price-to-book ratio (20 percent), high current ratio (10 percent), and low debt-to-equity (10 percent). Each component is normalized to a 0-100 sub-score using Graham's preferred bands. A score above 75 indicates strong alignment with defensive criteria; a score below 25 indicates a name unlikely to clear Graham's checks.

Does this template work without MarketXLS installed?

The Sample workbook works without MarketXLS - it ships with static values pre-filled and is fully functional for inspection and educational use. The Template workbook requires the MarketXLS add-in because every data cell is a live formula. To use the Template version, install the MarketXLS add-in and click Data, then Refresh All. The formulas will populate with the most recent EPS, book value, price, and other inputs.

The bottom line

A Graham Number Screener Excel does not predict the future. It does something simpler and more useful: it forces a disciplined check against a valuation ceiling that has survived eight decades of market history. In a regime where the broad indexes are pulled by a narrow set of premium-multiple names, that check has tangible value. It surfaces the names quietly trading below their conservative ceiling and flags the names that have outrun any defensive interpretation of value.

The template ships with a dashboard-grade design so the output is presentation-ready. Use the scenario set to see how the universe changes when you tighten or relax the criteria. Use the stress test to find out which positions break first when earnings disappoint. Use the portfolio sleeve to size a Graham-style allocation against your own capital. Use the comparison matrix to put cheap names side by side with the premium-multiple alternatives so the trade-off is visible.

Visit marketxls.com to explore the full library of valuation, screening, options, and portfolio analytics formulas available inside Excel. Book a personalized walkthrough at marketxls.com/book-demo if you would like a guided tour of how MarketXLS supports advisor workflows, family office research desks, and self-directed value investors.

This template, and the analysis surrounding it, is educational. Nothing here is investment advice, a recommendation to buy or sell any security, or a forecast of future performance. Always consult a licensed financial professional before acting on any screening output.