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Divfex Bhd (XKLS:0131) Graham Number : RM0.08 (As of Mar. 2024)


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What is Divfex Bhd 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 (2024-06-03), the stock price of Divfex Bhd is RM0.125. Divfex Bhd's graham number for the quarter that ended in Mar. 2024 was RM0.08. Therefore, Divfex Bhd's Price to Graham Number ratio for today is 1.60.

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

XKLS:0131' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.6   Med: 1.79   Max: 4.5
Current: 1.56

During the past 13 years, the highest Price to Graham Number ratio of Divfex Bhd was 4.50. The lowest was 0.60. And the median was 1.79.

XKLS:0131's Price-to-Graham-Number is ranked better than
66.45% of 1368 companies
in the Software industry
Industry Median: 2.19 vs XKLS:0131: 1.56

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


Divfex Bhd Graham Number Historical Data

The historical data trend for Divfex Bhd'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.

Divfex Bhd Graham Number Chart

Divfex Bhd Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Jun20 Jun21 Jun22 Jun23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 0.06 0.07

Divfex Bhd Quarterly Data
Dec18 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 0.05 0.06 0.08 0.08 0.08

Competitive Comparison of Divfex Bhd's Graham Number

For the Information Technology Services subindustry, Divfex Bhd'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.


Divfex Bhd's Price-to-Graham-Number Distribution in the Software Industry

For the Software industry and Technology sector, Divfex Bhd's Price-to-Graham-Number distribution charts can be found below:

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



Divfex Bhd Graham Number Calculation

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

Divfex Bhd's Graham Number for the fiscal year that ended in Jun. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.029*0.007)
=0.07

Divfex Bhd'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*0.034*0.008)
=0.08

* 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.


Divfex Bhd  (XKLS:0131) 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.

Divfex Bhd's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=0.125/0.08
=1.60

* 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.


Divfex Bhd Graham Number Related Terms

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


Divfex Bhd (XKLS:0131) Business Description

Traded in Other Exchanges
N/A
Address
1, Persiaran Jalil 1, 2-05-01, Level 5, Ho Hup Tower, Bandar Bukit Jalil, Kuala Lumpur, SGR, MYS, 57000
Divfex Bhd is an investment holding company. It has three operating segments. Information and Communication Technology, which includes the Provision of a comprehensive range of tele/data communication, network infrastructure industrial automation & network performance monitoring solutions, and related services. Food Manufacturing (discontinued) includes Food and contract manufacturing. Other segments comprise operations related to investment holding activities, distribution, and reselling of hardware and software, and related services. The majority of revenue is generated from the Information & Communication Technology segment. Geographically, The group operates in Malaysia.

Divfex Bhd (XKLS:0131) Headlines

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