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 (2024-04-26), the stock price of Alteva is $4.70. Alteva's graham number for the quarter that ended in Sep. 2015 was $N/A. Therefore, Alteva's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Alteva's Graham Number or its related term are showing as below:
ALTV's Price-to-Graham-Number is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.505 * 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.
Alteva Graham Number Historical Data
The historical data trend for Alteva'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.
For the Telecom Services subindustry, Alteva'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.
Alteva's Price-to-Graham-Number Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Alteva's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Alteva's Price-to-Graham-Number falls into.
Alteva Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Alteva's Graham Number for the fiscal year that ended in Dec. 2014 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.
Alteva (AMEX:ALTV) 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.
Alteva's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Sep. 2015 )
=
4.70
/
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.
Alteva Graham Number Related Terms
Thank you for viewing the detailed overview of Alteva's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Alteva Inc was incorporated in New York on January 16, 1902. The Company, together with its subsidiaries, is a provider of hosted Unified Communications as a Service "UCaaS" that enhances business productivity and efficiency. Its UCaaS solution integrates and optimizes cloud-based technologies and business applications to deliver a comprehensive voice, video and collaboration service for the office and mobile workforce. Its cloud-based UCaaS solutions are focused on medium, large and enterprise markets, which are defined as 20-500 users per location. The Company also operates as a regional Incumbent Local Exchange Carrier "ILEC" in southern Orange County, New York and northern New Jersey. The Company operates in two segments; Unified Communications and Telephone. Its Telephone segment provides local and toll telephone service, high-speed broadband and fiber Internet access services and satellite video services to residential and business customers. Its Unified Communications Solutions offers a comprehensive managed solution including hosted voice and hybrid Session Initiation Protocol trunks, with integrated instant messaging, presence, unified messaging and video along with local, long distance and international communications services. Its Business Productivity Application integration is fully integrated with a variety of business productivity applications including Microsoft Office, and Google Apps for Business. Its Audio Conferencing and Web Collaboration Solutions offers a range of collaboration solutions including screen sharing and group audio and web conferencing for over 3,000 participants. Its Access Solutions offers a range of access solutions for businesses ranging from T1s to fiber connections and MPLS circuits and it works closely with various providers to coordinate installation and support the connectivity. Its Wholesale Services offers a packaged solution including infrastructure and services. Its Network Design and Management develop and support the implementation of customized network and voice solutions. Its Local network services include traditional dial tone that is used to make or to receive voice, fax or analog modem calls from a residence or business. Its Network access services connect a customer's telephone or other equipment to the transmission facilities of other carriers that provides long distance and other communications services. Its directory service group publishes and sells yellow and white page advertising in both print and online. The Company competes with both premise-based voice and video providers such as Avaya and Cisco, as well as cloud-based voice and UC providers such as 8x8, Inc., Verizon and Comcast; its directory services competes with Yellow Book, Verizon, Frontier, and CenturyLink; and it broadband internet and dial-up internet services competes with Cablevision in New York and Service Electric in New Jersey.
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