Topsports International Holdings (HKSE:06110) Graham Number : HK$3.52 (As of Aug. 2023)

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What is Topsports International 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 (2024-04-29), the stock price of Topsports International Holdings is HK$5.42. Topsports International Holdings's graham number for the quarter that ended in Aug. 2023 was HK$3.52. Therefore, Topsports International Holdings's Price to Graham Number ratio for today is 1.54.

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

HKSE:06110' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.54 Med: 2.05 Max: 2.59
Current: 1.54

During the past 7 years, the highest Price to Graham Number ratio of Topsports International Holdings was 2.59. The lowest was 1.54. And the median was 2.05.

HKSE:06110's Price-to-Graham-Number is ranked worse than
58.61% of 703 companies
in the Retail - Cyclical industry
Industry Median: 1.29 vs HKSE:06110: 1.54

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

Topsports International Holdings Graham Number Historical Data

The historical data trend for Topsports International 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.

Topsports International Holdings Graham Number Chart

Topsports International Holdings Annual Data

Trend

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Graham Number

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1.19

4.17

4.48

4.53

3.52

Topsports International Holdings Semi-Annual Data
	Feb17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Graham Number	Get a 7-Day Free Trial								4.76	4.49	3.90	3.53	3.52

Competitive Comparison of Topsports International Holdings's Graham Number

For the Apparel Retail subindustry, Topsports International 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.

Topsports International Holdings's Price-to-Graham-Number Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Topsports International Holdings's Price-to-Graham-Number distribution charts can be found below:

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

Topsports International Holdings Graham Number Calculation

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

Topsports International Holdings's Graham Number for the fiscal year that ended in Feb. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	1.621	*	0.34)
=	3.52

Topsports International Holdings's Graham Number for the quarter that ended in Aug. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	1.525	*	0.361)
=	3.52

Topsports International Holdings (HKSE:06110) 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.

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

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Aug. 2023 )
	=	5.42	/	3.52
	=	1.54

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.

Topsports International Holdings Graham Number Related Terms

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

Topsports International Holdings (HKSE:06110) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Topsports International Holdings Ltd (HKSE:06110) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

TPSRF:USA 6110:Mexico

Address

No. 928 Liuzhou Road, 22nd Floor, Belle International Building, Xuhui District, Shanghai, CHN

Website

https://www.topsports.com.cn

Topsports is the largest sportswear retailer in China, generating the majority of its revenue from selling products of international sportswear brands. The business operates as an intermediary between brand owners and consumers seeking to buy sportswear. The firm operates more than 6,500 stores directly as of the end of fiscal 2023, and most of these "single-brand" stores have been opened under the names of sportswear brands that it partners with, such as Nike and Adidas. In addition to these two sportswear giants, Topsports also has partnerships with sportswear brands such as Puma, Li Ning, Asics, and The North Face. While most of Topsports' sales take place in stores, the firm also operates online shops under the Topsports brand on major e-commerce platforms such as Alibaba and JD.com.

Topsports International Holdings (HKSE:06110) Headlines

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