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CMGE Technology Group (HKSE:00302) Graham Number : HK$0.27 (As of Dec. 2023)


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What is CMGE Technology Group 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 CMGE Technology Group is HK$1.25. CMGE Technology Group's graham number for the quarter that ended in Dec. 2023 was HK$0.27. Therefore, CMGE Technology Group's Price to Graham Number ratio for today is 4.66.

The historical rank and industry rank for CMGE Technology Group's Graham Number or its related term are showing as below:

HKSE:00302' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.71   Med: 1.32   Max: 4.93
Current: 4.63

During the past 8 years, the highest Price to Graham Number ratio of CMGE Technology Group was 4.93. The lowest was 0.71. And the median was 1.32.

HKSE:00302's Price-to-Graham-Number is ranked worse than
89.33% of 253 companies
in the Interactive Media industry
Industry Median: 1.74 vs HKSE:00302: 4.63

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


CMGE Technology Group Graham Number Historical Data

The historical data trend for CMGE Technology Group'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.

CMGE Technology Group Graham Number Chart

CMGE Technology Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial 1.80 3.86 3.45 - 0.27

CMGE Technology Group Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 3.03 1.07 - - 0.27

Competitive Comparison of CMGE Technology Group's Graham Number

For the Electronic Gaming & Multimedia subindustry, CMGE Technology Group'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.


CMGE Technology Group's Price-to-Graham-Number Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, CMGE Technology Group's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where CMGE Technology Group's Price-to-Graham-Number falls into.



CMGE Technology Group Graham Number Calculation

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

CMGE Technology Group's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*1.6*0.002)
=0.27

CMGE Technology Group's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*1.6*0.002)
=0.27

* 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.


CMGE Technology Group  (HKSE:00302) 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.

CMGE Technology Group's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=1.25/0.27
=4.66

* 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.


CMGE Technology Group Graham Number Related Terms

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CMGE Technology Group (HKSE:00302) Business Description

Traded in Other Exchanges
N/A
Address
Zhongkang North Road, 10th Floor, Building No. 4, Zhuoyue Meilin Center Square, Futian District, Guangdong Province, Shenzhen, CHN
CMGE is an IP-based mobile game developer and publisher in China with 55 licensed IPs and 68 proprietary IPs as of the end of 2021. The company has over 80 games on the shelf and over 20 games with lifecycles of over three years. Average monthly active users, or MAUs, of CMGE games reached 19.1 million in 2021. The market share of CMGE for online gaming grossing income in 2021 was around 1%.
Executives
Xiao Jian 2101 Beneficial owner
Sin Hendrick 2101 Beneficial owner
Zsy Holding Company Limited 2201 Interest of corporation controlled by you
Trident Trust Company (b.v.i.) Limited 2301 Trustee
Motion Game Company Limited
Profound Power Investment Limited
Fairview Ridge Investment Limited
Changpei Investment Centre, L.p.
Ambitious Profit Investment Limited
Silver Joyce International Limited
Zhongshouyou Brothers Limited
Xiao Jian 2307 Founder of a discretionary trust who can infl
Victory Aspire Group Limited 2201 Interest of corporation controlled by you
Cmb Wing Lung (trustee) Limited 2301 Trustee
Antopex Limited 2306 Nominee for another person

CMGE Technology Group (HKSE:00302) Headlines

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