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Nutraceutical International (Nutraceutical International) Graham Number : $20.86 (As of Jun. 2017)


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What is Nutraceutical International 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 Nutraceutical International is $41.80. Nutraceutical International's graham number for the quarter that ended in Jun. 2017 was $20.86. Therefore, Nutraceutical International's Price to Graham Number ratio for today is 2.00.

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

NUTR's Price-to-Graham-Number is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.26
* 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.


Nutraceutical International Graham Number Historical Data

The historical data trend for Nutraceutical International'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.

Nutraceutical International Graham Number Chart

Nutraceutical International Annual Data
Trend Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.73 20.18 19.79 21.12 24.10

Nutraceutical International Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 23.35 24.10 24.63 25.01 20.86

Competitive Comparison of Nutraceutical International's Graham Number

For the Packaged Foods subindustry, Nutraceutical International'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.


Nutraceutical International's Price-to-Graham-Number Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nutraceutical International's Price-to-Graham-Number distribution charts can be found below:

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



Nutraceutical International Graham Number Calculation

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

Nutraceutical International's Graham Number for the fiscal year that ended in Sep. 2016 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*12.906*2)
=24.10

Nutraceutical International's Graham Number for the quarter that ended in Jun. 2017 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*12.479*1.55)
=20.86

* 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.


Nutraceutical International  (NAS:NUTR) 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.

Nutraceutical International's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2017 )
=41.80/20.86
=2.00

* 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.


Nutraceutical International Graham Number Related Terms

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


Nutraceutical International (Nutraceutical International) Business Description

Traded in Other Exchanges
N/A
Address
Nutraceutical International Corp was incorporated in Delaware in 1993. The Company is a manufacturer, marketer, distributor and retailer of branded nutritional supplements and other natural products sold to and through domestic health and natural food stores. Internationally, it markets and distributes branded nutritional supplements and other natural products to and through health and natural product distributors and retailers. Its core business is to acquire, integrate and operate businesses in the natural products industry that manufacture, market and distribute branded nutritional supplements. The Company manufactures and sells nutritional supplements and other natural products under numerous brands, including Solaray, KAL, Dynamic Health, Nature's Life, LifeTime, Natural Balance, NaturalCare, Health from the Sun, Pioneer, Nutra BioGenesis, Life-flo, Organix South, Heritage Store and Monarch Nutraceuticals. It owns neighborhood natural food markets, which operates under the trade names The Real Food Company, Thom's Natural Foods, Cornucopia Community Market and Granola's. It also owns health food stores, which operates under various trade names, including Fresh Vitamins and Peachtree Natural Foods. The Company's products includes vitamins and minerals, herbs, specialty formulas, personal care products, liquid nutritional products, homeopathics, functional foods and other products.
Executives
J Kimo Esplin director C/O NUTRACEUTICAL INTERNATIONAL CORP, 1400 KEARNS BLVD, PARK CITY UT 84060
Bain Capital Investors Llc 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Bain Capital Fund Iv Lp 10 percent owner C/O BAIN CAPITAL LLC, TWO COPLEY PLACE, BOSTON MA 02199
Bcip Trust Associates Lp 10 percent owner C/O BAIN CAPITAL LLC, 111 HUNINGTON AVENUE, BOSTON MA 02199
Robert C Gay director C/O BAIN CAPITAL INC TWO COPLEY PLACE, BOSTON MA 02116
Matthew S Levin director BAIN CAPITAL PARTNERS LLC JOHN HANCOCK TOWER, 200 CLARENDON STREET BOSTON MA 02116
Associates Bcip 10 percent owner

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