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Metropolis Healthcare (BOM:542650) Graham Number : ₹166.97 (As of Mar. 2024)


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What is Metropolis Healthcare Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-06-03), the stock price of Metropolis Healthcare is ₹1905.90. Metropolis Healthcare's graham number for the quarter that ended in Mar. 2024 was ₹166.97. Therefore, Metropolis Healthcare's Price to Graham Number ratio for today is 11.41.

The historical rank and industry rank for Metropolis Healthcare's Graham Number or its related term are showing as below:

BOM:542650' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 5.98   Med: 8.97   Max: 18.48
Current: 11.41

During the past 9 years, the highest Price to Graham Number ratio of Metropolis Healthcare was 18.48. The lowest was 5.98. And the median was 8.97.

BOM:542650's Price-to-Graham-Number is ranked worse than
97.14% of 70 companies
in the Medical Diagnostics & Research industry
Industry Median: 1.96 vs BOM:542650: 11.41

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Metropolis Healthcare Graham Number Historical Data

The historical data trend for Metropolis Healthcare's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Metropolis Healthcare Graham Number Chart

Metropolis Healthcare Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
Get a 7-Day Free Trial Premium Member Only 215.11 302.49 110.20 139.25 166.94

Metropolis Healthcare Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 139.25 - 156.59 - 166.97

Competitive Comparison of Metropolis Healthcare's Graham Number

For the Diagnostics & Research subindustry, Metropolis Healthcare's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Metropolis Healthcare's Price-to-Graham-Number Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Metropolis Healthcare's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Metropolis Healthcare's Price-to-Graham-Number falls into.



Metropolis Healthcare Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Metropolis Healthcare's Graham Number for the fiscal year that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*49.803*24.87)
=166.94

Metropolis Healthcare's Graham Number for the quarter that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*49.803*24.88)
=166.97

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Metropolis Healthcare  (BOM:542650) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Metropolis Healthcare's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=1905.90/166.97
=11.41

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Metropolis Healthcare Graham Number Related Terms

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Metropolis Healthcare (BOM:542650) Business Description

Traded in Other Exchanges
Address
Hind Cycle Marg, 250-D, Udyog Bhavan, Behind Glaxo, Worli, Mumbai, MH, IND, 400 030
Metropolis Healthcare Ltd is a diagnostic company in India. It offers a comprehensive range of clinical laboratory tests and profiles, which are used for the prediction, early detection, diagnostic screening, confirmation, and monitoring of the disease. It also offers analytical and supports services to clinical research organizations for their clinical research projects. Pathology service is the only principal activity and reportable segment from which the Group generates its revenue.

Metropolis Healthcare (BOM:542650) Headlines

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