GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Organogenesis Holdings Inc (NAS:ORGO) » Definitions » Graham Number

Organogenesis Holdings (Organogenesis Holdings) Graham Number : $1.20 (As of Mar. 2024)


View and export this data going back to 2016. Start your Free Trial

What is Organogenesis Holdings 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 (2024-05-19), the stock price of Organogenesis Holdings is $2.74. Organogenesis Holdings's graham number for the quarter that ended in Mar. 2024 was $1.20. Therefore, Organogenesis Holdings's Price to Graham Number ratio for today is 2.29.

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

ORGO' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.81   Med: 1.9   Max: 7.38
Current: 2.28

During the past 9 years, the highest Price to Graham Number ratio of Organogenesis Holdings was 7.38. The lowest was 0.81. And the median was 1.90.

ORGO's Price-to-Graham-Number is ranked worse than
64.04% of 584 companies
in the Drug Manufacturers industry
Industry Median: 1.725 vs ORGO: 2.28

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


Organogenesis Holdings Graham Number Historical Data

The historical data trend for Organogenesis Holdings'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.

Organogenesis Holdings Graham Number Chart

Organogenesis Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only - 1.37 4.82 2.11 1.27

Organogenesis Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 2.03 1.77 1.99 1.20 1.20

Competitive Comparison of Organogenesis Holdings's Graham Number

For the Drug Manufacturers - Specialty & Generic subindustry, Organogenesis Holdings'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.


Organogenesis Holdings's Price-to-Graham-Number Distribution in the Drug Manufacturers Industry

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

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



Organogenesis Holdings Graham Number Calculation

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

Organogenesis Holdings'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*1.782*0.04)
=1.27

Organogenesis Holdings's Graham Number for the quarter that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*1.768*0.036)
=1.20

* 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.


Organogenesis Holdings  (NAS:ORGO) 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.

Organogenesis Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=2.74/1.20
=2.29

* 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.


Organogenesis Holdings Graham Number Related Terms

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


Organogenesis Holdings (Organogenesis Holdings) Business Description

Traded in Other Exchanges
Address
85 Dan Road, Canton, MA, USA, 02021
Organogenesis Holdings Inc is a regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced wound care, surgical and sports medicine markets. Its product category includes Advanced Wound Care and Surgical and Sports Medicine. The company generates maximum revenue from Advanced Wound Care products. Some of its products include PuraPly Antimicrobial, Affinity, NuShield, Apligraf, Dermagraft and others.
Executives
Albert Erani 10 percent owner 150 DAN ROAD, 150 DAN ROAD, CANTON MA 01002
Michael W Katz 10 percent owner
Arthur S Leibowitz director 139 SOUNDVIEW DRIVE, PORT WASHINGTON NY 11050
Michael Joseph Driscoll director C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Gary S. Gillheeney director, officer: President and CEO C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Gilberto Quintero director C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Michele Ilene Korfin director 17 STATE STREET, 7TH FLOOR, NEW YORK NY 10004
Antonio S. Montecalvo officer: VP Health Policy & Contracting C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Jon L Giacomin director 7000 CARDINAL PLACE, DUBLIN OH 43017
David Francisco officer: Chief Financial Officer C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Red Holdings, Llc 10 percent owner C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Prathyusha Duraibabu director C/O SANGAMO THERAPEUTICS, INC., 501 CANAL BLVD., RICHMOND CA 94804
Glenn H Nussdorf director, 10 percent owner
Alan A. Ades director, 10 percent owner C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021
Gn 2016 Organo 10-year Grat U/a/d September 30, 2016 10 percent owner C/O ORGANOGENESIS INC., 85 DAN ROAD, CANTON MA 02021