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 (2024-05-14), the stock price of Asahi Yukizai is 円4955.00. Asahi Yukizai's graham number for the quarter that ended in Dec. 2023 was 円6,957.63. Therefore, Asahi Yukizai's Price to Graham Number ratio for today is 0.71.
The historical rank and industry rank for Asahi Yukizai's Graham Number or its related term are showing as below:
TSE:4216'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.44 Med: 0.61 Max: 0.96
Current: 0.71
During the past 13 years, the highest Price to Graham Number ratio of Asahi Yukizai was 0.96. The lowest was 0.44. And the median was 0.61.
TSE:4216's Price-to-Graham-Number is ranked better than 67.05% of 1132
companies
in the Construction industry
Industry Median: 1.01
vs TSE:4216: 0.71
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Asahi Yukizai Graham Number Historical Data
The historical data trend for Asahi Yukizai'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.
Competitive Comparison of Asahi Yukizai's Graham Number
For the Building Products & Equipment subindustry, Asahi Yukizai'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.
Asahi Yukizai's Price-to-Graham-Number Distribution in the Construction Industry
For the Construction industry and Industrials sector, Asahi Yukizai's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Asahi Yukizai's Price-to-Graham-Number falls into.
Asahi Yukizai Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Asahi Yukizai's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as
* 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.
Asahi Yukizai (TSE:4216) 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.
Asahi Yukizai's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2023 )
=
4955.00
/
6,957.63
=
0.71
* 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.
Asahi Yukizai Graham Number Related Terms
Thank you for viewing the detailed overview of Asahi Yukizai's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Asahi Yukizai Corp engages in the manufacture and sale of industrial resins and piping materials. The firm offers synthetic resin piping material for valves, pipes, fittings, and other locations, as well as the Dymatrix high-performance synthetic resin piping material for LCD- and semiconductor-related systems; and foundry materials and functional resins for casting, molding materials, high functional materials, and others. It also engages in the development and supply of water and thermal resources, including well drilling and geothermal exploitation, and hot spring exploitation; design and construction of water utility facilities and reuse of wastewater; industrial water and wastewater treatment; and provision of public sewage facilities.
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