GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Raghav Productivity Enhancers Ltd (BOM:539837) » Definitions » Graham Number

Raghav Productivity Enhancers (BOM:539837) Graham Number : ₹135.85 (As of Mar. 2024)


View and export this data going back to 2016. Start your Free Trial

What is Raghav Productivity Enhancers 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 (2024-05-26), the stock price of Raghav Productivity Enhancers is ₹686.95. Raghav Productivity Enhancers's graham number for the quarter that ended in Mar. 2024 was ₹135.85. Therefore, Raghav Productivity Enhancers's Price to Graham Number ratio for today is 5.88.

The historical rank and industry rank for Raghav Productivity Enhancers's Graham Number or its related term are showing as below:

BOM:539837' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.12   Med: 2.25   Max: 5.19
Current: 5.06

During the past 13 years, the highest Price to Graham Number ratio of Raghav Productivity Enhancers was 5.19. The lowest was 1.12. And the median was 2.25.

BOM:539837's Price-to-Graham-Number is ranked worse than
93.55% of 1148 companies
in the Chemicals industry
Industry Median: 1.505 vs BOM:539837: 5.06

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


Raghav Productivity Enhancers Graham Number Historical Data

The historical data trend for Raghav Productivity Enhancers'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.

Raghav Productivity Enhancers Graham Number Chart

Raghav Productivity Enhancers Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.42 55.02 95.04 169.38 132.43

Raghav Productivity Enhancers Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 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 - 119.81 127.10 - 135.85

Competitive Comparison of Raghav Productivity Enhancers's Graham Number

For the Chemicals subindustry, Raghav Productivity Enhancers'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.


Raghav Productivity Enhancers's Price-to-Graham-Number Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Raghav Productivity Enhancers's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Raghav Productivity Enhancers's Price-to-Graham-Number falls into.



Raghav Productivity Enhancers Graham Number Calculation

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

Raghav Productivity Enhancers'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*68.913*11.31)
=132.43

Raghav Productivity Enhancers'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*68.913*8.8)
=116.81

* 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.


Raghav Productivity Enhancers  (BOM:539837) 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.

Raghav Productivity Enhancers's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=686.95/116.81
=5.88

* 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.


Raghav Productivity Enhancers Graham Number Related Terms

Thank you for viewing the detailed overview of Raghav Productivity Enhancers's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Raghav Productivity Enhancers (BOM:539837) Business Description

Traded in Other Exchanges
N/A
Address
Alankar Plaza A-10, Central Spine, Office No. 36, 4th Floor, Vidhyadhar Nagar, Jaipur, RJ, IND, 302023
Raghav Productivity Enhancers Ltd is engaged in the business of manufacturing trading of Ramming Mass and other Quartz related items. Its operating segment is Ramming Mass. Some of its products include Acidic Premix Ramming Mass; White Ramming Mass; Premixed Ramming Mass; Silica Ramming Mixes; White Premix Ramming Mass; Magnesite Ramming Mass; Casting Powder; Tundish Board and others. The company sells its products in India and also exports them to other countries.

Raghav Productivity Enhancers (BOM:539837) Headlines

No Headlines