Price ceiling
Your personal maximum buy price for a holding.
Definition
A price ceiling is the upper buy limit you set before purchasing. It is not market consensus fair value — it is the highest price that still meets your required yield, multiple, or safety margin. Above the ceiling, you wait or revise assumptions.
Tools and guides
Related terms
- Graham number / Graham ceiling— Educational ceiling from EPS and book value: √(22.5 × EPS × BVPS).
- Dividend yield— Annual distributions divided by price paid.
- Margin of safety— Discount applied to a ceiling so you do not buy at the limit.