Deepest Graham Discounts — Stocks Below Fair Value (2026)

Benjamin Graham never wanted to predict the future. He wanted to pay so little for a stock that even a mediocre future would be profitable. This ranking applies that philosophy literally: it shows every stock sorted by how far its current price sits below the Graham fair value estimate.

The discount is calculated as ((Price - Fair Value) / Fair Value) x 100. A stock at $70 with a fair value of $100 shows -30%, meaning you could buy it at a 30% discount to what the model thinks it is worth. Graham typically demanded at least a 30% margin of safety before investing — he called this margin "the central concept of investment."

AlphaStocks' fair value model builds on the framework Graham described in "The Intelligent Investor" and "Security Analysis," incorporating normalized earnings, expected growth, and sector-appropriate discount rates. For banks, fair value leans on book value and net interest margin. For tech companies, it emphasizes earnings growth and free cash flow. For REITs, net asset value takes priority. These sector adjustments prevent the kind of false signals that a one-size-fits-all valuation formula would produce.

The stocks at the top of this list are trading at the widest gap between price and estimated worth. Some of these are genuine opportunities — temporary market pessimism, sector rotation, or post-earnings overreaction. Others are cheap for legitimate reasons: failing products, rising debt, or structural decline. The discount tells you how far the price has fallen; it does not tell you whether the fall is justified. Check the Piotroski F-Score (7+ means the financials are sound) and the quality score before treating any deep discount as a buying opportunity.