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Animalcare Group (LSE:ANCR) Graham Number : £0.52 (As of Dec. 2023)


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What is Animalcare Group 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 (2024-05-05), the stock price of Animalcare Group is £2.36. Animalcare Group's graham number for the quarter that ended in Dec. 2023 was £0.52. Therefore, Animalcare Group's Price to Graham Number ratio for today is 4.54.

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

LSE:ANCR' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.96   Med: 2.46   Max: 6.32
Current: 4.54

During the past 13 years, the highest Price to Graham Number ratio of Animalcare Group was 6.32. The lowest was 1.96. And the median was 2.46.

LSE:ANCR's Price-to-Graham-Number is ranked worse than
87.37% of 586 companies
in the Drug Manufacturers industry
Industry Median: 1.705 vs LSE:ANCR: 4.54

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


Animalcare Group Graham Number Historical Data

The historical data trend for Animalcare Group'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.

Animalcare Group Graham Number Chart

Animalcare Group Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 0.36 0.52

Animalcare Group Semi-Annual Data
Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - 0.29 0.36 0.56 0.52

Competitive Comparison of Animalcare Group's Graham Number

For the Drug Manufacturers - Specialty & Generic subindustry, Animalcare Group'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.


Animalcare Group's Price-to-Graham-Number Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Animalcare Group's Price-to-Graham-Number distribution charts can be found below:

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



Animalcare Group Graham Number Calculation

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

Animalcare Group'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*0.111*0.108)
=0.52

Animalcare Group'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*0.111*0.108)
=0.52

* 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.


Animalcare Group  (LSE:ANCR) 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.

Animalcare Group's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=2.36/0.52
=4.54

* 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.


Animalcare Group Graham Number Related Terms

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Animalcare Group (LSE:ANCR) Business Description

Traded in Other Exchanges
Address
Monks Cross Drive, Moorside, York, GBR, YO32 9LB
Animalcare Group PLC is active in the healthcare division in the United Kingdom. It is a generic veterinary medicines company. The company mainly caters to veterinary professionals in the treatment of companion animals through a product line comprised of licensed veterinary medicines and companion animal identification products and services. Its only reportable segment is Pharmaceutical which includes the development and marketing of innovative pharmaceutical products. The company has a presence in Belgium, The Netherlands, Germany, Italy, Portugal, European Union - Other, Asia, Middle East Africa, Spain, the United Kingdom, and Other Countries of which Spain derives a majority of revenue to the company.

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