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Lex Nimble Solutions (BOM:541196) Graham Number : ₹41.77 (As of Sep. 2023)


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What is Lex Nimble Solutions 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 (2024-05-11), the stock price of Lex Nimble Solutions is ₹76.50. Lex Nimble Solutions's graham number for the quarter that ended in Sep. 2023 was ₹41.77. Therefore, Lex Nimble Solutions's Price to Graham Number ratio for today is 1.83.

The historical rank and industry rank for Lex Nimble Solutions's Graham Number or its related term are showing as below:

BOM:541196' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.93   Med: 1.32   Max: 4.24
Current: 1.83

During the past 11 years, the highest Price to Graham Number ratio of Lex Nimble Solutions was 4.24. The lowest was 0.93. And the median was 1.32.

BOM:541196's Price-to-Graham-Number is ranked better than
60.01% of 1353 companies
in the Software industry
Industry Median: 2.24 vs BOM:541196: 1.83

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


Lex Nimble Solutions Graham Number Historical Data

The historical data trend for Lex Nimble Solutions'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.

Lex Nimble Solutions Graham Number Chart

Lex Nimble Solutions Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.63 38.47 34.14 31.94 38.83

Lex Nimble Solutions Semi-Annual Data
Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 25.96 31.36 33.84 38.90 41.77

Competitive Comparison of Lex Nimble Solutions's Graham Number

For the Information Technology Services subindustry, Lex Nimble Solutions'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.


Lex Nimble Solutions's Price-to-Graham-Number Distribution in the Software Industry

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

* The bar in red indicates where Lex Nimble Solutions's Price-to-Graham-Number falls into.



Lex Nimble Solutions Graham Number Calculation

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

Lex Nimble Solutions's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*34.55*1.94)
=38.83

Lex Nimble Solutions's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*35.567*2.18)
=41.77

* 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.


Lex Nimble Solutions  (BOM:541196) 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.

Lex Nimble Solutions's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=76.50/41.77
=1.83

* 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.


Lex Nimble Solutions Graham Number Related Terms

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


Lex Nimble Solutions (BOM:541196) Business Description

Traded in Other Exchanges
N/A
Address
Quardant 3, Module A1, Cyber Towers, 10th Floor, Hitech City, Madhapur, Hyderabad, TG, IND, 500 081
Lex Nimble Solutions Ltd is engaged in IT consulting, support and solutions and appraisal advisory, certification, training and related services on quality models. The company's business segments are Software services and Consulting services. It derives key revenue from the Consulting services segment which covers IT staffing, Support Services and Payroll and accounting Service; and Quality Certification, Consulting and Training. Geographically, the group has customers located within India and other countries.

Lex Nimble Solutions (BOM:541196) Headlines

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