GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SU Group Holdings Ltd (NAS:SUGP) » Definitions » Graham Number

SU Group Holdings (SU Group Holdings) Graham Number : $1.08 (As of Sep. 2023)


View and export this data going back to 2024. Start your Free Trial

What is SU Group 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 (2024-05-12), the stock price of SU Group Holdings is $2.35. SU Group Holdings's graham number for the quarter that ended in Sep. 2023 was $1.08. Therefore, SU Group Holdings's Price to Graham Number ratio for today is 2.17.

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

SUGP' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0   Med: 0   Max: 2.18
Current: 2.18

During the past 3 years, the highest Price to Graham Number ratio of SU Group Holdings was 2.18. The lowest was 0.00. And the median was 0.00.

SUGP's Price-to-Graham-Number is ranked worse than
70.89% of 687 companies
in the Business Services industry
Industry Median: 1.33 vs SUGP: 2.18

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


SU Group Holdings Graham Number Historical Data

The historical data trend for SU Group 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.

SU Group Holdings Graham Number Chart

SU Group Holdings Annual Data
Trend Sep21 Sep22 Sep23
Graham Number
0.51 0.86 1.08

SU Group Holdings Semi-Annual Data
Sep21 Mar22 Sep22 Mar23 Sep23
Graham Number - - 0.87 1.33 1.08

Competitive Comparison of SU Group Holdings's Graham Number

For the Security & Protection Services subindustry, SU Group 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.


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

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

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



SU Group Holdings Graham Number Calculation

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

SU Group Holdings'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*0.53*0.097)
=1.08

SU Group Holdings'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*0.53*0.098)
=1.08

* 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.


SU Group Holdings  (NAS:SUGP) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=2.35/1.08
=2.17

* 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.


SU Group Holdings Graham Number Related Terms

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


SU Group Holdings (SU Group Holdings) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
31 Hung To Road, Unit 01 – 03, 3/F, Billion Trade Centre, Kwun Tong, Kowloon, Hong Kong, HKG
SU Group Holdings Ltd and its subsidiaries is an integrated security-related services company that primarily provides security-related engineering services, and to a lesser extent, security guarding and screening services and related vocational training services, in Hong Kong.

SU Group Holdings (SU Group Holdings) Headlines