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Srivasavi Adhesive Tapes (NSE:SRIVASAVI) Graham Number : ₹40.08 (As of Sep. 2023)


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What is Srivasavi Adhesive Tapes 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 (2024-05-25), the stock price of Srivasavi Adhesive Tapes is ₹117.30. Srivasavi Adhesive Tapes's graham number for the quarter that ended in Sep. 2023 was ₹40.08. Therefore, Srivasavi Adhesive Tapes's Price to Graham Number ratio for today is 2.93.

The historical rank and industry rank for Srivasavi Adhesive Tapes's Graham Number or its related term are showing as below:

NSE:SRIVASAVI' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.26   Med: 2.19   Max: 3.47
Current: 2.93

During the past 4 years, the highest Price to Graham Number ratio of Srivasavi Adhesive Tapes was 3.47. The lowest was 1.26. And the median was 2.19.

NSE:SRIVASAVI's Price-to-Graham-Number is ranked worse than
81.27% of 1148 companies
in the Chemicals industry
Industry Median: 1.505 vs NSE:SRIVASAVI: 2.93

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


Srivasavi Adhesive Tapes Graham Number Historical Data

The historical data trend for Srivasavi Adhesive Tapes'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.

Srivasavi Adhesive Tapes Graham Number Chart

Srivasavi Adhesive Tapes Annual Data
Trend Mar20 Mar21 Mar22 Mar23
Graham Number
7.55 13.02 21.03 39.15

Srivasavi Adhesive Tapes Semi-Annual Data
Mar20 Mar21 Mar22 Sep22 Mar23 Sep23
Graham Number Get a 7-Day Free Trial - - 15.74 34.13 40.08

Competitive Comparison of Srivasavi Adhesive Tapes's Graham Number

For the Specialty Chemicals subindustry, Srivasavi Adhesive Tapes'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.


Srivasavi Adhesive Tapes's Price-to-Graham-Number Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Srivasavi Adhesive Tapes's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Srivasavi Adhesive Tapes's Price-to-Graham-Number falls into.



Srivasavi Adhesive Tapes Graham Number Calculation

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

Srivasavi Adhesive Tapes'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*20.276*3.36)
=39.15

Srivasavi Adhesive Tapes'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*22.179*3.219)
=40.08

* 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.


Srivasavi Adhesive Tapes  (NSE:SRIVASAVI) 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.

Srivasavi Adhesive Tapes's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=117.30/40.08
=2.93

* 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.


Srivasavi Adhesive Tapes Graham Number Related Terms

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Srivasavi Adhesive Tapes (NSE:SRIVASAVI) Business Description

Traded in Other Exchanges
N/A
Address
Kodigehalli Main Road, Kodigehalli, 17/2, 2nd Floor, Above Sub Registrar Office, Near Chairman’s Club, Sahakarnagar, Sanjeevini Nagar, Bangalore, KA, IND, 560092
Srivasavi Adhesive Tapes Ltd is engaged in manufacturing, coating, converting and distribution of Adhesive tapes, Die cuts, Films, Foams and allied products. The company caters to various industries such as Automotive, Locomotives, Aerospace, Defence, Electrical & Electronics, Renewable Energy, Solar, Print & Paper, Food & Pharma, FMCG, White & Brown Goods, Furniture, Retail, Construction, Infrastructure, Sports & Fitness Equipment. The company has two business divisions Domestic Sales and Exports.

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