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Gabriel India (BOM:505714) Graham Number : ₹137.66 (As of Mar. 2024)


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What is Gabriel India 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 (2024-06-09), the stock price of Gabriel India is ₹382.30. Gabriel India's graham number for the quarter that ended in Mar. 2024 was ₹137.66. Therefore, Gabriel India's Price to Graham Number ratio for today is 2.78.

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

BOM:505714' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.7   Med: 1.73   Max: 2.79
Current: 2.78

During the past 13 years, the highest Price to Graham Number ratio of Gabriel India was 2.79. The lowest was 0.70. And the median was 1.73.

BOM:505714's Price-to-Graham-Number is ranked worse than
85.16% of 957 companies
in the Vehicles & Parts industry
Industry Median: 1.12 vs BOM:505714: 2.78

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


Gabriel India Graham Number Historical Data

The historical data trend for Gabriel India'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.

Gabriel India Graham Number Chart

Gabriel India Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 76.35 67.28 85.46 110.72 137.49

Gabriel India Quarterly Data
Jun19 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 111.16 - 123.31 - 137.66

Competitive Comparison of Gabriel India's Graham Number

For the Auto Parts subindustry, Gabriel India'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.


Gabriel India's Price-to-Graham-Number Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Gabriel India's Price-to-Graham-Number distribution charts can be found below:

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



Gabriel India Graham Number Calculation

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

Gabriel India's Graham Number for the fiscal year that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*67.538*12.44)
=137.49

Gabriel India'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*67.538*12.47)
=137.66

* 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.


Gabriel India  (BOM:505714) 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.

Gabriel India's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=382.30/137.66
=2.78

* 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.


Gabriel India Graham Number Related Terms

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


Gabriel India (BOM:505714) Business Description

Traded in Other Exchanges
Address
29th Milestone, Pune-Nashik Highway, Village Kuruli, Taluka Khed, Pune, MH, IND, 410 501
Gabriel India Ltd is an Indian company that manufactures and sells auto components. It offers ride-control products catering to all segments of the automotive industry. The company provides a wide range of ride control products including Shock absorbers, Struts, Axle dampers, Cabin dampers and seat dampers, and Front forks, among others. The company primarily operates in India, and its products are also marketed outside India. It generates key revenue from within India. The customers of the company cover four-wheelers, two and three-wheelers, and commercial vehicles and railways, of which major revenue is derived from two and three-wheelers.

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