GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Investcorp India Acquisition Corp (NAS:IVCA) » Definitions » Graham Number

Investcorp India Acquisition (Investcorp India Acquisition) Graham Number : $6.61 (As of Dec. 2023)


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

What is Investcorp India 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 (2024-05-17), the stock price of Investcorp India Acquisition is $11.26. Investcorp India Acquisition's graham number for the quarter that ended in Dec. 2023 was $6.61. Therefore, Investcorp India Acquisition's Price to Graham Number ratio for today is 1.70.

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

IVCA' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.6   Med: 1.8   Max: 2
Current: 1.7

During the past 3 years, the highest Price to Graham Number ratio of Investcorp India Acquisition was 2.00. The lowest was 1.60. And the median was 1.80.

IVCA's Price-to-Graham-Number is ranked better than
59.63% of 218 companies
in the Diversified Financial Services industry
Industry Median: 1.955 vs IVCA: 1.70

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


Investcorp India Acquisition Graham Number Historical Data

The historical data trend for Investcorp India 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.

Investcorp India Acquisition Graham Number Chart

Investcorp India Acquisition Annual Data
Trend Dec21 Dec22 Dec23
Graham Number
- 5.16 6.87

Investcorp India Acquisition Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 4.63 6.01 7.29 6.77 6.61

Competitive Comparison of Investcorp India Acquisition's Graham Number

For the Shell Companies subindustry, Investcorp India 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.


Investcorp India Acquisition's Price-to-Graham-Number Distribution in the Diversified Financial Services Industry

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

* The bar in red indicates where Investcorp India Acquisition's Price-to-Graham-Number falls into.



Investcorp India Acquisition Graham Number Calculation

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

Investcorp India 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*6.518*0.322)
=6.87

Investcorp India Acquisition's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*6.518*0.298)
=6.61

* 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.


Investcorp India Acquisition  (NAS:IVCA) 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.

Investcorp India Acquisition's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=11.26/6.61
=1.70

* 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.


Investcorp India Acquisition Graham Number Related Terms

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


Investcorp India Acquisition (Investcorp India Acquisition) Business Description

Traded in Other Exchanges
N/A
Address
Elgin Avenue, PO Box 1111, Century Yard, Cricket Square, George Town, CYM, KY1-1102
Website
Investcorp India Acquisition Corp is a newly organized blank check company. It is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
Executives
Manpreet Singh director C/O FOUNDER SPAC, 11752 LAKE POTOMAC DRIVE, ROCKVILLE MD 20854
Ice I Holdings Pte. Ltd. 10 percent owner CENTURY YARD, CRICKET SQUARE, ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102
Girish Vanvari director C/O INVESTCORP INDIA ACQUISITION CORP., ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102
Dean Clinton director, officer: Principal Financial Officer C/O INVESTCORP INDIA ACQUISITION CORP., ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102
Nikhil Kalghatgi director, officer: Principal Executive Officer C/O INVESTCORP INDIA ACQUISITION CORP., ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102
Rishi Kapoor director C/O INVESTCORP INDIA ACQUISITION CORP., ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102
Kunal Bahl director C/O INVESTCORP INDIA ACQUISITION CORP., ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102
Ashwini Asokan director C/O INVESTCORP INDIA ACQUISITION CORP., ELGIN AVENUE, PO BOX 1111, GEORGE TOWN, GRAND CAYMAN E9 KY1-1102

Investcorp India Acquisition (Investcorp India Acquisition) Headlines