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.
The historical rank and industry rank for Star Plus Legend Holdings's Graham Number or its related term are showing as below:
HKSE:06683'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 7.95 Med: 7.95 Max: 12.03
Current: 11.55
During the past 5 years, the highest Price to Graham Number ratio of Star Plus Legend Holdings was 12.03. The lowest was 7.95. And the median was 7.95.
HKSE:06683's Price-to-Graham-Number is ranked worse than 98.37% of 1291
companies
in the Consumer Packaged Goods industry
Industry Median: 1.27
vs HKSE:06683: 11.55
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Star Plus Legend Holdings Graham Number Historical Data
* 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 Star Plus Legend Holdings's Graham Number
For the Packaged Foods subindustry, Star Plus Legend Holdings'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.
Star Plus Legend Holdings's Price-to-Graham-Number Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Star Plus Legend Holdings's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Star Plus Legend Holdings's Price-to-Graham-Number falls into.
Star Plus Legend Holdings Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Star Plus Legend Holdings'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.
Star Plus Legend Holdings (HKSE:06683) 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.
Star Plus Legend Holdings's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2023 )
=
11.32
/
0.98
=
11.56
* 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.
Star Plus Legend Holdings Graham Number Related Terms
Thank you for viewing the detailed overview of Star Plus Legend Holdings's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Star Plus Legend Holdings (HKSE:06683) Business Description
Star Plus Legend Holdings Ltd is an investment holding company. The company and its subsidiaries are principally engaged in new retail business and IP creation and operation business in the People's Republic of China. In the new retail business, the company primarily develops and sells health management products and skincare products. In the IP creation and operation business, the company creates unique celebrity IPs by providing planning and other project management services to media content, acting as an event planning service provider and investor in large-scale concerts featuring celebrities and other events, together with designing and licensing proprietary celebrity IPs. The majority of revenue is derived from the new retail business.
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