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Pacific Mercantile Bancorp (Pacific Mercantile Bancorp) Graham Number : $10.24 (As of Jun. 2021)


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What is Pacific Mercantile Bancorp 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 (2024-04-26), the stock price of Pacific Mercantile Bancorp is $9.40. Pacific Mercantile Bancorp's graham number for the quarter that ended in Jun. 2021 was $10.24. Therefore, Pacific Mercantile Bancorp's Price to Graham Number ratio for today is 0.92.

The historical rank and industry rank for Pacific Mercantile Bancorp's Graham Number or its related term are showing as below:

PMBC' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.28   Med: 1.2   Max: 9.53
Current: 0.92

During the past 13 years, the highest Price to Graham Number ratio of Pacific Mercantile Bancorp was 9.53. The lowest was 0.28. And the median was 1.20.

PMBC's Price-to-Graham-Number is not ranked
in the Banks industry.
Industry Median: 0.625 vs PMBC: 0.92

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


Pacific Mercantile Bancorp Graham Number Historical Data

The historical data trend for Pacific Mercantile Bancorp'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.

Pacific Mercantile Bancorp Graham Number Chart

Pacific Mercantile Bancorp Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 7.01 12.58 5.84 7.26

Pacific Mercantile Bancorp Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 Premium Member Only Premium Member Only 3.16 5.56 7.26 9.48 10.24

Competitive Comparison of Pacific Mercantile Bancorp's Graham Number

For the Banks - Regional subindustry, Pacific Mercantile Bancorp'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.


Pacific Mercantile Bancorp's Price-to-Graham-Number Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Pacific Mercantile Bancorp's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Pacific Mercantile Bancorp's Price-to-Graham-Number falls into.



Pacific Mercantile Bancorp Graham Number Calculation

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

Pacific Mercantile Bancorp's Graham Number for the fiscal year that ended in Dec. 2020 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*6.694*0.35)
=7.26

Pacific Mercantile Bancorp's Graham Number for the quarter that ended in Jun. 2021 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*6.95*0.67)
=10.24

* 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.


Pacific Mercantile Bancorp  (NAS:PMBC) 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.

Pacific Mercantile Bancorp's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2021 )
=9.40/10.24
=0.92

* 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.


Pacific Mercantile Bancorp Graham Number Related Terms

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


Pacific Mercantile Bancorp (Pacific Mercantile Bancorp) Business Description

Traded in Other Exchanges
N/A
Address
949 South Coast Drive, Suite 300, Costa Mesa, CA, USA, 92626
Pacific Mercantile Bancorp, through its subsidiary, is engaged in the commercial banking business in Southern California. Its Commercial Banking segment provides small and medium-sized businesses, professional firms, and individuals with a diversified range of products and services such as various types of deposit accounts, commercial and consumer loans, cash management services, and online banking services.
Executives
Denis P Kalscheur director 949 SOUTH COAST DRIVE, THIRD FLOOR, COSTA MESA CA 92626
Manish Dutta director 949 SOUTH COAST DRIVE THIRD FLOOR COSTA MESA CA 92626
Michele S Miyakawa director 949 SOUTH COAST DRIVE THIRD FLOOR COSTA MESA CA 92626
Shannon F Eusey director 949 SOUTH COAST DRIVE, THIRD FLOOR, COSTA MESA CA 92626
Stephen P Yost director 2221 EAST ROSECRANS AVENUE SUITE 131 EL SEGUNDO CA 90245
Michael P Hoopis director 23 CORPORATE PLAZA SUITE 246 NEWPORT BEACH CA 92660
Cindy Verity officer: EVP, Head of Cash Management 949 SOUTH COAST DRIVE THIRD FLOOR COSTA MESA CA 92626
Curt Alan Christianssen officer: EVP & CFO PACIFIC MERCANTILE BANK 949 SOUTH COAST DRIVE, THIRD FLOOR COSTA MESA CA 92626
Robert S. Anderson officer: EVP & Chief Credit Officer 949 SOUTH COAST DRIVE 3RD FLOOR COSTA MESA CA 92626
Philipp Garcia officer: EVP 949 SOUTH COAST DRIVE, THIRD FLOOR COSTA MESA CA 92626
Van Der Voort Shamara C. officer: EVP/Head of Operations 949 SOUTH COAST DRIVE 3RD FLOOR COSTA MESA CA 92626
Sean Foley officer: EVP CBO 949 SOUTH COAST DRIVE 3RD FLOOR COSTA MESA CA 92626
Maxwell Sinclair officer: EVP, Chief Compliance Officer PACIFIC MERCANTILE BANCORP 949 SOUTH COAST DRIVE, 3RD FLOOR COSTA MESA CA 92626
Bradford R Dinsmore officer: Chief Executive Officer 303 PEACHTREE STREET, NE, ATLANTA GA 30308
Tom Wagner officer: EVP, Corporate Finance 949 SOUTH COAST DRIVE 3RD FLOOR COSTA MESA CA 92626