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AlSaif Stores for Development and Investment Co (SAU:4192) Graham Number : ﷼2.47 (As of Dec. 2023)


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What is AlSaif Stores for Development and Investment Co 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 (2024-05-16), the stock price of AlSaif Stores for Development and Investment Co is ﷼11.70. AlSaif Stores for Development and Investment Co's graham number for the quarter that ended in Dec. 2023 was ﷼2.47. Therefore, AlSaif Stores for Development and Investment Co's Price to Graham Number ratio for today is 4.73.

The historical rank and industry rank for AlSaif Stores for Development and Investment Co's Graham Number or its related term are showing as below:

SAU:4192' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 3.07   Med: 3.18   Max: 4.74
Current: 4.74

During the past 3 years, the highest Price to Graham Number ratio of AlSaif Stores for Development and Investment Co was 4.74. The lowest was 3.07. And the median was 3.18.

SAU:4192's Price-to-Graham-Number is ranked worse than
94.41% of 304 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.275 vs SAU:4192: 4.74

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


AlSaif Stores for Development and Investment Co Graham Number Historical Data

The historical data trend for AlSaif Stores for Development and Investment Co'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.

AlSaif Stores for Development and Investment Co Graham Number Chart

AlSaif Stores for Development and Investment Co Annual Data
Trend Dec21 Dec22 Dec23
Graham Number
3.56 2.95 2.68

AlSaif Stores for Development and Investment Co Quarterly Data
Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Graham Number Get a 7-Day Free Trial Premium Member Only 2.95 2.93 2.73 2.49 2.47

Competitive Comparison of AlSaif Stores for Development and Investment Co's Graham Number

For the Furnishings, Fixtures & Appliances subindustry, AlSaif Stores for Development and Investment Co'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.


AlSaif Stores for Development and Investment Co's Price-to-Graham-Number Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, AlSaif Stores for Development and Investment Co's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where AlSaif Stores for Development and Investment Co's Price-to-Graham-Number falls into.



AlSaif Stores for Development and Investment Co Graham Number Calculation

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

AlSaif Stores for Development and Investment Co'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*1.146*0.279)
=2.68

AlSaif Stores for Development and Investment Co'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*1.146*0.237)
=2.47

* 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.


AlSaif Stores for Development and Investment Co  (SAU:4192) 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.

AlSaif Stores for Development and Investment Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=11.70/2.47
=4.73

* 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.


AlSaif Stores for Development and Investment Co Graham Number Related Terms

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AlSaif Stores for Development and Investment Co (SAU:4192) Business Description

Traded in Other Exchanges
N/A
Address
Saud bin Abdulaziz bin Mohammed Street, Riyadh Altaawon Distrct Emam, P.O. Box 10448, Riyadh, SAU, 11626
AlSaif Stores for Development and Investment Co operates in the home utensils and appliances retail sector in Saudi Arabia. The company fulfills customer needs such as by providing small home appliances, kitchenware, serveware, and other home accessories.

AlSaif Stores for Development and Investment Co (SAU:4192) Headlines

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