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Sula Vineyards (BOM:543711) Graham Number : ₹126.58 (As of Mar. 2024)


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What is Sula Vineyards 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 (2024-05-23), the stock price of Sula Vineyards is ₹505.10. Sula Vineyards's graham number for the quarter that ended in Mar. 2024 was ₹126.58. Therefore, Sula Vineyards's Price to Graham Number ratio for today is 3.99.

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

BOM:543711' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 3.08   Med: 3.72   Max: 4.35
Current: 3.99

During the past 5 years, the highest Price to Graham Number ratio of Sula Vineyards was 4.35. The lowest was 3.08. And the median was 3.72.

BOM:543711's Price-to-Graham-Number is ranked worse than
90% of 130 companies
in the Beverages - Alcoholic industry
Industry Median: 1.73 vs BOM:543711: 3.99

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


Sula Vineyards Graham Number Historical Data

The historical data trend for Sula Vineyards'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.

Sula Vineyards Graham Number Chart

Sula Vineyards Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
- 29.98 62.04 119.49 126.58

Sula Vineyards Quarterly Data
Mar20 Mar21 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 116.81 - 122.03 - 126.58

Competitive Comparison of Sula Vineyards's Graham Number

For the Beverages - Wineries & Distilleries subindustry, Sula Vineyards'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.


Sula Vineyards's Price-to-Graham-Number Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Sula Vineyards's Price-to-Graham-Number distribution charts can be found below:

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



Sula Vineyards Graham Number Calculation

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

Sula Vineyards'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*64.442*11.05)
=126.58

Sula Vineyards'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*64.442*11.05)
=126.58

* 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.


Sula Vineyards  (BOM:543711) 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.

Sula Vineyards's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=505.10/126.58
=3.99

* 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.


Sula Vineyards Graham Number Related Terms

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Sula Vineyards (BOM:543711) Business Description

Traded in Other Exchanges
Address
N.S. Phadke Marg, 901, Hubtown Solaris, Andheri (East), Mumbai, MH, IND, 400 069
Sula Vineyards Ltd is a producer and seller of wine. It distributes wines under a bouquet of popular brands including RASA, Dindori, The Source, Satori, Madera, and Dia. The company's business is broadly classified under two categories namely the production of wine, the import of wines and spirits, and the distribution of wines and spirits and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms.

Sula Vineyards (BOM:543711) Headlines

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