How to Use Graham Number Stock Screener for Better Investment Decisions [Tutorial]
The Graham Number for JPM sits around $142 compared to a market price near $210. A graham number stock screener identifies stocks trading below this intrinsic value estimate. This tutorial shows how to set one up using ValueMarkers and the guru tracker tool.
Key Takeaways
- Graham Number Stock Screener is a key concept for evaluating stock fundamentals and making informed investment decisions
- AAPL (P/E 28.3, ROIC 45.1%) and MSFT (P/E 32.1, ROIC 35.2%) demonstrate how this metric applies to real stocks
- Compare graham number stock screener across industry peers rather than using a single universal benchmark
- The ValueMarkers screener tracks 120+ indicators including margin-of-safety, pe-ratio, dcf-intrinsic-value across 73 global exchanges
- BRK.B (P/E 9.8, P/B 1.5) and JPM (P/E 11.2) offer value-oriented perspectives on this metric
Step 1: Open Your Stock Screener
Work through to the ValueMarkers screener or your preferred analysis platform. You will need access to fundamental data across multiple stocks. The ValueMarkers screener provides 120+ indicators across 73 global exchanges, making it ideal for graham number stock screener analysis.
Step 2: Set Your Initial Filters
Start with broad filters to narrow the universe. Set minimum market cap at $1 billion to ensure liquidity. Filter for positive free cash flow and Piotroski score of 6 or higher. V scores a Piotroski of 8, representing the quality threshold you want.
| Filter | Minimum | Purpose |
|---|---|---|
| Market Cap | $1B+ | Liquidity |
| Piotroski Score | 6+ | Financial strength |
| ROIC | 10%+ | Capital efficiency |
| Free Cash Flow | Positive | Cash generation |
Step 3: Apply Graham-Specific Criteria
Add filters specific to your graham number stock screener analysis. If screening for value, set P/E below 20 (JPM at 11.2 passes easily). For quality, require ROIC above 15% (MSFT at 35.2% passes). For dividend income, set yield above 2% (JNJ at 3.1%, KO at 3.0%).
Step 4: Review the Results
Your filtered list should contain 20-50 candidates. Sort by the metric most important to your thesis. Review the top 10-15 stocks individually. Check each company's latest quarterly earnings for any recent fundamental changes.
Step 5: Conduct Deep Analysis on Top Picks
For your top 5 candidates, read the full 10-K annual report. Calculate intrinsic value using DCF analysis or the Graham Number. Compare to current market price. BRK.B at P/B 1.5 trades near book value, while AAPL at P/E 28.3 commands a premium for its 45.1% ROIC.
Step 6: Build Your Watchlist
Add final candidates to a watchlist with target buy prices. Set alerts for price drops below your intrinsic value estimates. Document your graham number stock screener analysis for each stock including the date and data used. Review monthly for changes.
Step 7: Execute and Monitor
When a stock hits your target price, execute your buy order. Set a position size limit (typically 3-8% of portfolio per stock). Monitor quarterly earnings for any deviation from your graham number stock screener thesis. Use the ValueMarkers portfolio tracker to centralize monitoring across 73 exchanges.
How to Apply This in Practice
Turning theory into a repeatable workflow is where most investors get stuck. Here is a step-by-step approach that keeps the process disciplined.
- Start with the screener and filter for stocks that meet your basic quality thresholds across the 120+ indicators ValueMarkers tracks.
- Pull the last three to five years of financials for each candidate. Trends matter more than any single data point.
- Benchmark against two or three peers in the same industry. Absolute numbers mean little without a reference point.
- Cross-check the result with an independent lens, such as a DCF valuation or the 5-pillar score on the leaderboard.
- Document your thesis in writing before you act. If you cannot defend the position on paper, the conviction is likely not there yet.
Comparison to Alternative Approaches
No single tool covers every scenario, so it helps to know what else is available.
Relative valuation multiples such as P/E, P/B, and EV/EBITDA are quick to compute and easy to benchmark against peers. They work well for screening but miss business-specific nuance. Discounted cash flow is more thorough but requires explicit assumptions about growth and discount rates. Run both on the DCF calculator to see how sensitive the fair value is to those inputs.
Quality screens such as the Piotroski F-Score and Altman Z-Score filter for balance sheet strength rather than cheapness. Pair a valuation approach with a quality check and the false-positive rate drops meaningfully.
Common Mistakes to Avoid
A few pitfalls repeat across every investor who works with graham number stock screener.
- Treating one indicator as a verdict. A single ratio never tells the full story. Pair it with context from the methodology and other pillars.
- Using stale data. Financials from two years ago can distort conclusions. Always work from recent filings.
- Ignoring the industry baseline. Acceptable ranges differ across sectors, so compare within a peer group rather than a broad index.
- Skipping the quality check. Weak earnings quality can make an otherwise attractive number misleading. Run a Piotroski and Altman review alongside it.
- Confusing a low figure with a bargain. Sometimes the market is pricing in real deterioration. Confirm the thesis before acting.
Key Limitations
Honesty is the price of admission for any serious framework. Graham number stock screener comes with real caveats.
- Accounting choices shape the inputs. Two firms can report similar headline numbers while applying different assumptions underneath.
- Past performance does not guarantee future results. The signal is descriptive, not predictive.
- Industry distortions are common. Financial firms, insurers, REITs, and utilities often need specialized treatment.
- One-off events can flatter or punish the figure. A divestiture, impairment, or tax adjustment can reshape the picture for a single period.
- Sentiment and macro conditions are outside the model. Interest rates, credit cycles, and capital flows can override fundamentals for long stretches.
Further reading: SEC EDGAR · Investopedia
Why graham number stock screener for investors Matters
This section anchors the discussion on graham number stock screener for investors. The detailed treatment, formula, and worked examples appear in the body of this article above. The points below summarize the most important takeaways for value investors who want to apply graham number stock screener for investors in real portfolio decisions. ValueMarkers exposes the underlying data on every covered ticker via the screener and stock profile pages, so the concepts in this article translate directly into actionable filters.
Key inputs for graham number stock screener for investors
See the main discussion of graham number stock screener for investors in the sections above for the full treatment, including the inputs, the calculation methodology, the typical sector benchmarks, and the most common pitfalls to avoid. The ValueMarkers screener lets value investors filter the full universe of 100,000+ stocks across 73 exchanges using graham number stock screener for investors alongside the rest of the 120-indicator composite, with sector percentiles and historical trends shown on every stock profile.
Sector benchmarks for graham number stock screener for investors
See the main discussion of graham number stock screener for investors in the sections above for the full treatment, including the inputs, the calculation methodology, the typical sector benchmarks, and the most common pitfalls to avoid. The ValueMarkers screener lets value investors filter the full universe of 100,000+ stocks across 73 exchanges using graham number stock screener for investors alongside the rest of the 120-indicator composite, with sector percentiles and historical trends shown on every stock profile.
Frequently Asked Questions
what happens if the stock market crashes
Market crashes create buying opportunities for value investors with cash reserves. BRK.B (P/B 1.5) holds significant cash precisely for this purpose. Historically, the S&P 500 has recovered from every crash within 2-5 years. Focus on companies with strong balance sheets and low debt-to-equity ratios.
what time does the stock market open
U.S. stock markets open at 9:30 AM Eastern Time, Monday through Friday. Pre-market trading begins at 4:00 AM ET on most brokerages. Earnings releases often occur before market open or after the 4:00 PM close, making these windows important for fundamental investors.
are stock markets closed today
U.S. stock markets close on federal holidays including New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. Markets close early (1:00 PM ET) on the day before Independence Day, Thanksgiving, and Christmas Eve.
what time does the stock market close
U.S. stock markets close at 4:00 PM Eastern Time. After-hours trading continues until 8:00 PM ET on most platforms. Many earnings reports are released after the close, and the resulting price movements occur in after-hours and pre-market sessions.
when does the stock market open
The NYSE and Nasdaq open at 9:30 AM Eastern Time on regular trading days. Extended hours trading is available from 4:00 AM to 9:30 AM (pre-market) and 4:00 PM to 8:00 PM (after-hours) through most major brokerages.
why is the stock market down today
Daily market moves reflect a combination of economic data, earnings reports, Federal Reserve signals, and geopolitical events. Value investors focus on individual stock fundamentals rather than daily index movements. Companies like JNJ (P/E 15.4, yield 3.1%) often hold up better during broad declines.
Ready to put this analysis into practice? Use the ValueMarkers Guru Tracker to screen stocks by margin-of-safety, pe-ratio, dcf-intrinsic-value, and 120+ other indicators across 73 global exchanges.
Written by Javier Sanz, Founder of ValueMarkers Last updated April 2026
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Disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.