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OrganiGram Holdings (TSX:OGI) Graham Number : C$N/A (As of Mar. 2024)


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What is OrganiGram 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 (2024-05-31), the stock price of OrganiGram Holdings is C$2.35. OrganiGram Holdings's graham number for the quarter that ended in Mar. 2024 was C$N/A. Therefore, OrganiGram Holdings's Price to Graham Number ratio for today is N/A.

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

During the past 10 years, the highest Price to Graham Number ratio of OrganiGram Holdings was 59.06. The lowest was 1.45. And the median was 3.38.

TSX:OGI's Price-to-Graham-Number is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.63
* Ranked among companies with meaningful Price-to-Graham-Number only.

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


OrganiGram Holdings Graham Number Historical Data

The historical data trend for OrganiGram 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.

OrganiGram Holdings Graham Number Chart

OrganiGram Holdings Annual Data
Trend Apr12 Apr13 Apr14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 9.35 - - -

OrganiGram Holdings Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 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 - - - - -

Competitive Comparison of OrganiGram Holdings's Graham Number

For the Drug Manufacturers - Specialty & Generic subindustry, OrganiGram 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.


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

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

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



OrganiGram Holdings Graham Number Calculation

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

OrganiGram Holdings's Graham Number for the fiscal year that ended in Aug. 2021 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*6.195*-1.2)
=N/A

OrganiGram 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*2.777*-0.725)
=N/A

* 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.


OrganiGram Holdings  (TSX:OGI) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=2.35/N/A
=N/A

* 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.


OrganiGram Holdings Graham Number Related Terms

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OrganiGram Holdings (TSX:OGI) Business Description

Traded in Other Exchanges
Address
145 King Street West, Suite 1400, Toronto, ON, CAN, M5H 1J8
OrganiGram Holdings Inc is engaged in producing indoor-grown cannabis for patients and adult recreational consumers in Canada. The company has also developed a portfolio of adult-use recreational cannabis brands including Edison, Big Bag o' Buds, SHRED, Monjour, Holy Mountain, and Trailblazer. Tremblant Cannabis, and artisanal craft brand, Laurentian are recent additions to Organigram's existing brand portfolio.
Executives
Donald Geoffrey Machum Director