GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Maks Energy Solutions India Ltd (NSE:MAKS) » Definitions » Graham Number

Maks Energy Solutions India (NSE:MAKS) Graham Number : ₹16.95 (As of Mar. 2023)


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

What is Maks Energy Solutions India 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 (2024-05-12), the stock price of Maks Energy Solutions India is ₹55.20. Maks Energy Solutions India's graham number for the quarter that ended in Mar. 2023 was ₹16.95. Therefore, Maks Energy Solutions India's Price to Graham Number ratio for today is 3.26.

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

NSE:MAKS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.39   Med: 1.39   Max: 3.27
Current: 3.26

During the past 4 years, the highest Price to Graham Number ratio of Maks Energy Solutions India was 3.27. The lowest was 1.39. And the median was 1.39.

NSE:MAKS's Price-to-Graham-Number is ranked worse than
82.88% of 2202 companies
in the Industrial Products industry
Industry Median: 1.55 vs NSE:MAKS: 3.26

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


Maks Energy Solutions India Graham Number Historical Data

The historical data trend for Maks Energy Solutions India'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.

Maks Energy Solutions India Graham Number Chart

Maks Energy Solutions India Annual Data
Trend Mar20 Mar21 Mar22 Mar23
Graham Number
31.77 6.56 - 16.95

Maks Energy Solutions India Semi-Annual Data
Mar20 Mar21 Mar22 Mar23
Graham Number - 6.56 - 16.95

Competitive Comparison of Maks Energy Solutions India's Graham Number

For the Specialty Industrial Machinery subindustry, Maks Energy Solutions India'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.


Maks Energy Solutions India's Price-to-Graham-Number Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Maks Energy Solutions India's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Maks Energy Solutions India's Price-to-Graham-Number falls into.



Maks Energy Solutions India Graham Number Calculation

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

Maks Energy Solutions India's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*23.161*0.551)
=16.95

Maks Energy Solutions India's Graham Number for the quarter that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*23.161*0.551)
=16.95

* 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.


Maks Energy Solutions India  (NSE:MAKS) 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.

Maks Energy Solutions India's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2023 )
=55.20/16.95
=3.26

* 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.


Maks Energy Solutions India Graham Number Related Terms

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


Maks Energy Solutions India (NSE:MAKS) Business Description

Traded in Other Exchanges
N/A
Address
Shubham Society, Showroom-1, 599/600 Rasta Peth, Near- Parsi Agyari, Pune, MH, IND, 411011
Maks Energy Solutions India Ltd is engaged in the business of trading, dealing, assembling, selling, installing, testing, and commissioning generator and Diesel Generator sets. The company's products include Tata generators, Cummins generators, Perkins generators, and Spare parts. The company also has dealers outside India in Europe, Latin America, the USA, Singapore, the Middle East, Africa, Thailand, Nepal, Sri Lanka, and many other countries.

Maks Energy Solutions India (NSE:MAKS) Headlines

No Headlines