GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Velocity Energy Inc. (OTCPK:VCYE) » Definitions » Graham Number

Velocity Energy (Velocity Energy) Graham Number : $N/A (As of Jun. 2009)


View and export this data going back to . Start your Free Trial

What is Velocity Energy 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 (2024-05-14), the stock price of Velocity Energy is $0.0001. Velocity Energy's graham number for the quarter that ended in Jun. 2009 was $N/A. Therefore, Velocity Energy's Price to Graham Number ratio for today is N/A.

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

VCYE's Price-to-Graham-Number is not ranked *
in the Oil & Gas industry.
Industry Median: 0.87
* Ranked among companies with meaningful Price-to-Graham-Number only.

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


Velocity Energy Graham Number Historical Data

The historical data trend for Velocity Energy'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.

Velocity Energy Graham Number Chart

Velocity Energy Annual Data
Trend Dec05 Dec06 Dec07 Dec08
Graham Number
- - - -

Velocity Energy Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
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 - - - - -

Competitive Comparison of Velocity Energy's Graham Number

For the Oil & Gas E&P subindustry, Velocity Energy'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.


Velocity Energy's Price-to-Graham-Number Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Velocity Energy's Price-to-Graham-Number distribution charts can be found below:

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



Velocity Energy Graham Number Calculation

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

Velocity Energy's Graham Number for the fiscal year that ended in Dec. 2008 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*-0.01*-0.17)
=N/A

Velocity Energy's Graham Number for the quarter that ended in Jun. 2009 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*-0.223*-0.323)
=N/A

* 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.


Velocity Energy  (OTCPK:VCYE) 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.

Velocity Energy's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2009 )
=0.0001/N/A
=N/A

* 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.


Velocity Energy Graham Number Related Terms

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


Velocity Energy (Velocity Energy) Business Description

Traded in Other Exchanges
N/A
Address
523 North Sam Houston Parkway East, Suite 175, Houston, TX, USA, 77060
Velocity Energy Inc is an oil and gas exploration and production company. It is engaged in the acquisition, development, exploration and production of natural gas and oil.
Executives
Michael J Pawelek director, officer: President and CEO 300 EAST SONTERRA BLVD. STE 1220 SAN ANTONIO TX 78258
Peter Benz 10 percent owner 171 MADISON AVE., 17 FL.,, NEW YORK NY 10016
Longview Fund Lp 10 percent owner VIKING ASSET MANAGEMENT LLC, 66 BOVET ROAD, SUITE 320, SAN MATEO, CA 94402
Howard J Taylor director, 10 percent owner, officer: CEO STE. 194 48 PAR LA VILLE RD HAMILTON D0 HM11

Velocity Energy (Velocity Energy) Headlines

No Headlines