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 (2024-04-20), the stock price of Seven & i Holdings Co is 円1995.50. Seven & i Holdings Co's graham number for the quarter that ended in Feb. 2024 was 円1,330.80. Therefore, Seven & i Holdings Co's Price to Graham Number ratio for today is 1.50.
The historical rank and industry rank for Seven & i Holdings Co's Graham Number or its related term are showing as below:
TSE:3382'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.94 Med: 1.44 Max: 2.31
Current: 1.5
During the past 13 years, the highest Price to Graham Number ratio of Seven & i Holdings Co was 2.31. The lowest was 0.94. And the median was 1.44.
TSE:3382's Price-to-Graham-Number is ranked worse than 56.78% of 236
companies
in the Retail - Defensive industry
Industry Median: 1.25
vs TSE:3382: 1.50
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Seven & i Holdings Co Graham Number Historical Data
The historical data trend for Seven & i Holdings Co'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.
Seven & i Holdings Co Annual Data
Trend
Feb15
Feb16
Feb17
Feb18
Feb19
Feb20
Feb21
Feb22
Feb23
Feb24
Graham Number
1,304.89
1,280.39
809.46
1,087.49
965.12
Seven & i Holdings Co Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Graham Number
1,088.66
1,068.01
1,205.46
1,292.77
1,330.80
Competitive Comparison
For the Grocery Stores subindustry, Seven & i Holdings Co'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.
Seven & i Holdings Co Price-to-Graham-Number Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Seven & i Holdings Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Seven & i Holdings Co's Price-to-Graham-Number falls into.
Seven & i Holdings Co Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Seven & i Holdings Co's Graham Number for the fiscal year that ended in Feb. 2024 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.
Seven & i Holdings Co (TSE:3382) 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.
Seven & i Holdings Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Feb. 2024 )
=
1995.50
/
1,330.80
=
1.50
* 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.
Seven & i Holdings Co Graham Number Related Terms
Thank you for viewing the detailed overview of Seven & i Holdings Co's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Seven & i Holdings Co (TSE:3382) Business Description
Seven & i Holdings operates 7-Eleven, the world's largest convenience store chain, with nearly 72,000 stores globally. C-store operations, mainly in Japan and North America, represent 75% of group sales (54% of operating revenue) and nearly 85% of operating profits. 7-Eleven Japan, the market leader in Japan's C-store industry, has acquired 45% value share and 38% share in store count. 7-Eleven Inc., the largest C-store chain in the U.S., made a $21 billion acquisition of Speedway in 2020. The deal lifted its total store count to about 13,700. Other retail activities including superstores, department stores, and specialty retailers either earn low margins or are in the red. The financial business, mainly ATM operations, is the other key profit contributor.
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