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Driver Group (LSE:DRV) Graham Number : £0.10 (As of Sep. 2023)


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What is Driver 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 (2024-05-17), the stock price of Driver Group is £0.24. Driver Group's graham number for the quarter that ended in Sep. 2023 was £0.10. Therefore, Driver Group's Price to Graham Number ratio for today is 2.34.

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

LSE:DRV' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.16   Med: 1.29   Max: 2.6
Current: 2.4

During the past 13 years, the highest Price to Graham Number ratio of Driver Group was 2.60. The lowest was 0.16. And the median was 1.29.

LSE:DRV's Price-to-Graham-Number is ranked worse than
76.36% of 681 companies
in the Business Services industry
Industry Median: 1.3 vs LSE:DRV: 2.40

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


Driver Group Graham Number Historical Data

The historical data trend for Driver 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.

Driver Group Graham Number Chart

Driver Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.55 0.43 0.40 - 0.10

Driver Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 0.39 0.22 - - 0.10

Competitive Comparison of Driver Group's Graham Number

For the Consulting Services subindustry, Driver 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.


Driver Group's Price-to-Graham-Number Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Driver Group's Price-to-Graham-Number distribution charts can be found below:

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



Driver Group Graham Number Calculation

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

Driver Group's Graham Number for the fiscal year that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.234*0.002)
=0.10

Driver Group's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.234*0.002)
=0.10

* 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.


Driver Group  (LSE:DRV) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=0.24/0.10
=2.34

* 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.


Driver Group Graham Number Related Terms

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Driver Group (LSE:DRV) Business Description

Traded in Other Exchanges
N/A
Address
125 Old Broad Street, Suite 706-708, Floor 7, London, GBR, EC2N 1AR
Driver Group PLC provides consultancy services to the engineering and construction industries. The business activity of the group is primarily operated through divisions such as Europe and the Americas; Asia Pacific; Middle East. Geographically, it derives a majority of its revenue from the United Kingdom and can be seen across the region of Oman, France, Qatar, Germany, Kuwait, China, the US, Canada, and others. It offers quantity surveying, quantum and planning experts, litigation support, contract administration, and commercial advice/management services; and capital investment consultancy services, including development, project, and contracting management services.

Driver Group (LSE:DRV) Headlines