Orix Jreit (TSE:8954) Graham Number : 円139,072.82 (As of Aug. 2023)

Orix Jreit Graham Number Chart

Orix Jreit Annual Data
	Trend	Aug14	Aug15	Aug16	Aug17	Aug18	Aug19	Aug20	Aug21	Aug22	Aug23
Graham Number		Get a 7-Day Free Trial					140,196.47	152,877.47	140,756.97	147,029.96	139,072.82

Orix Jreit Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Graham Number	Get a 7-Day Free Trial															139,512.39	147,029.95	153,321.57	139,072.82	-

Competitive Comparison of Orix Jreit's Graham Number

For the REIT - Office subindustry, Orix Jreit'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.

Orix Jreit's Price-to-Graham-Number Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Orix Jreit's Price-to-Graham-Number distribution charts can be found below:

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

Orix Jreit Graham Number Calculation

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

Orix Jreit's Graham Number for the fiscal year that ended in Aug. 2023 is calculated as

Orix Jreit's Graham Number for the quarter that ended in Aug. 2023 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.

Orix Jreit  (TSE:8954) 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.

Orix Jreit's Price to Graham number Ratio for today 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.

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.

Orix Jreit Graham Number Related Terms

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Orix Jreit (TSE:8954) Business Description