GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Generation Asia I Acquisition Ltd (NAS:GAQ) » Definitions » Graham Number

Generation Asia I Acquisition (Generation Asia I Acquisition) Graham Number : $5.40 (As of Mar. 2024)


View and export this data going back to 2022. Start your Free Trial

What is Generation Asia I Acquisition 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 (2024-05-21), the stock price of Generation Asia I Acquisition is $11.12. Generation Asia I Acquisition's graham number for the quarter that ended in Mar. 2024 was $5.40. Therefore, Generation Asia I Acquisition's Price to Graham Number ratio for today is 2.06.

The historical rank and industry rank for Generation Asia I Acquisition's Graham Number or its related term are showing as below:

GAQ' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.54   Med: 2.04   Max: 12.24
Current: 2.06

During the past 3 years, the highest Price to Graham Number ratio of Generation Asia I Acquisition was 12.24. The lowest was 1.54. And the median was 2.04.

GAQ's Price-to-Graham-Number is ranked worse than
54.84% of 217 companies
in the Diversified Financial Services industry
Industry Median: 1.94 vs GAQ: 2.06

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


Generation Asia I Acquisition Graham Number Historical Data

The historical data trend for Generation Asia I Acquisition'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.

Generation Asia I Acquisition Graham Number Chart

Generation Asia I Acquisition Annual Data
Trend Dec21 Dec22 Dec23
Graham Number
- 4.94 5.78

Generation Asia I Acquisition Quarterly Data
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 5.72 6.82 5.67 5.61 5.40

Competitive Comparison of Generation Asia I Acquisition's Graham Number

For the Shell Companies subindustry, Generation Asia I Acquisition'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.


Generation Asia I Acquisition's Price-to-Graham-Number Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Generation Asia I Acquisition's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Generation Asia I Acquisition's Price-to-Graham-Number falls into.



Generation Asia I Acquisition Graham Number Calculation

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

Generation Asia I Acquisition'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*5.176*0.287)
=5.78

Generation Asia I Acquisition'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*5.16*0.251)
=5.40

* 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.


Generation Asia I Acquisition  (NAS:GAQ) 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.

Generation Asia I Acquisition's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=11.12/5.40
=2.06

* 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.


Generation Asia I Acquisition Graham Number Related Terms

Thank you for viewing the detailed overview of Generation Asia I Acquisition's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Generation Asia I Acquisition (Generation Asia I Acquisition) Business Description

Traded in Other Exchanges
N/A
Address
Cricket Square, Boundary Hall, Grand Cayman, CYM, KY1-1102
Generation Asia I Acquisition Ltd is a blank check company.
Executives
Mei Gao director 101 CENTRAL PARK WEST, 4B, NEW YORK NY 10023
Sunghwan Cho director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Roy Kuan director, officer: Chief Executive Officer 68 YEE WO STREET, 18/F, CAUSEWAY BAY K3 00000
Kwok Catherine Chung Ka officer: Chief Financial Officer TWO EXCHANGE SQUARE, SUITE 3102, 8 CONNAUGHT PLACE, HONG KONG K3
Norimitsu Niwa director, officer: Chief Operating Officer TWO EXCHANGE SQUARE, SUITE 3102, 8 CONNAUGHT PLACE, HONG KONG K3
Gary Wb Chan director TWO EXCHANGE SQUARE, SUITE 3102, 8 CONNAUGHT PLACE, HONG KONG K3

Generation Asia I Acquisition (Generation Asia I Acquisition) Headlines