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 (2024-05-27), the stock price of Vanachai Group PCL is ฿3.84. Vanachai Group PCL's graham number for the quarter that ended in Mar. 2024 was ฿3.92. Therefore, Vanachai Group PCL's Price to Graham Number ratio for today is 0.98.
The historical rank and industry rank for Vanachai Group PCL's Graham Number or its related term are showing as below:
BKK:VNG'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.76 Med: 1.29 Max: 5.21
Current: 0.98
During the past 13 years, the highest Price to Graham Number ratio of Vanachai Group PCL was 5.21. The lowest was 0.76. And the median was 1.29.
BKK:VNG's Price-to-Graham-Number is ranked worse than 55.91% of 186
companies
in the Forest Products industry
Industry Median: 0.87
vs BKK:VNG: 0.98
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Vanachai Group PCL Graham Number Historical Data
The historical data trend for Vanachai Group PCL'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.
Competitive Comparison of Vanachai Group PCL's Graham Number
For the Lumber & Wood Production subindustry, Vanachai Group PCL'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.
Vanachai Group PCL's Price-to-Graham-Number Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Vanachai Group PCL's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Vanachai Group PCL's Price-to-Graham-Number falls into.
Vanachai Group PCL Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Vanachai Group PCL's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Vanachai Group PCL (BKK:VNG) 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.
Vanachai Group PCL's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2024 )
=
3.84
/
3.92
=
0.98
* 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.
Vanachai Group PCL Graham Number Related Terms
Thank you for viewing the detailed overview of Vanachai Group PCL's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Vanachai Group PCL is a building materials company that manufactures and distributes wood-based products. The company's primary products include board panels, particle boards, and wood substitutes. The company creates wood-based goods such as particleboards, medium density fiberboards (MDF boards), Doorskin and melamine laminated particleboards, which are distributed to both domestic and international markets. Vanachai also sells finished products that include melamine doors, door frames, resins, formaldehyde adhesives, and finished flooring. The company generates the vast majority of its revenue in Thailand.
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