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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 (2024-04-25), the stock price of Independent Bank Group is $39.35. Independent Bank Group's graham number for the quarter that ended in Mar. 2024 was $45.63. Therefore, Independent Bank Group's Price to Graham Number ratio for today is 0.86.
The historical rank and industry rank for Independent Bank Group's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Independent Bank Group was 2.46. The lowest was 0.41. And the median was 1.13.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
The historical data trend for Independent Bank Group'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.
Independent Bank Group Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Graham Number | Get a 7-Day Free Trial | 57.36 | 61.02 | 64.31 | 58.45 | 48.86 |
Independent Bank Group 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 | 57.95 | 55.37 | 51.83 | 49.11 | 45.63 |
For the Banks - Regional subindustry, Independent Bank Group'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.
For the Banks industry and Financial Services sector, Independent Bank Group's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Independent Bank Group's Price-to-Graham-Number falls into.
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Independent Bank Group's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI) |
= | sqrt of (22.5 | * | 32.896 | * | 3.225) |
= | 48.86 |
Independent Bank Group'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 | * | 32.851 | * | 2.817) |
= | 45.63 |
* 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.
Independent Bank Group (NAS:IBTX) 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.
Independent Bank Group's Price to Graham number Ratio for today is calculated as
Price to Graham number | = | Share Price (Today) | / | Graham number (Q: Mar. 2024 ) |
= | 39.35 | / | 45.63 | |
= | 0.86 |
* 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.
Thank you for viewing the detailed overview of Independent Bank Group's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Janet P Froetscher | director | CBOE GLOBAL MARKETS, 433 W. VAN BUREN ST., CHICAGO IL 60607 |
Paul B Langdale | officer: EVP, Chief Financial Officer | 7777 HENNEMAN WAY, MCKINNEY TX 75070 |
Brenda K Montgomery | officer: EVP, Chief Accounting Officer | 7777 HENNEMAN WAY, MCKINNEY TX 75070 |
Michael B Hobbs | officer: EVP/ Chief Lending Officer | 1331 17TH STREET, SUITE 200, DENVER CO 80202 |
Daniel W Brooks | director, officer: Vice Chairman and CRO | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
David R Brooks | director, officer: Chairman and CEO | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
William E Fair | director | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
James P Tippit | officer: EVP Corporate Responsibility | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
Jennings John Webb Iii | director | 1980 POST OAK BOULEVARD, SUITE 2150, HOUSTON TX 77056 |
James C White | officer: EVP and COO | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
G Stacy Smith | director | 300 CRESCENT COURT SUITE 1111, DALLAS TX 75201 |
Michelle S Hickox | officer: EVP and CFO | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
John G Turpen | officer: EVP, Chief Risk Officer | 2000 MCKINNEY AVE, SUITE 700, DALLAS TX 75201 |
Paul Washington | director | 1600 REDBUD BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
Mark S Haynie | officer: EVP - General Counsel | 1600 REDBUS BOULEVARD, SUITE 400, MCKINNEY TX 75069 |
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