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 Woori Financial Group is $30.62. Woori Financial Group's graham number for the quarter that ended in Sep. 2023 was $134.82. Therefore, Woori Financial Group's Price to Graham Number ratio for today is 0.23.
The historical rank and industry rank for Woori Financial Group's Graham Number or its related term are showing as below:
WF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.18 Med: 0.25 Max: 0.34
Current: 0.24
During the past 7 years, the highest Price to Graham Number ratio of Woori Financial Group was 0.34. The lowest was 0.18. And the median was 0.25.
WF's Price-to-Graham-Number is ranked better than 94.25% of 1373
companies
in the Banks industry
Industry Median: 0.63
vs WF: 0.24
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Woori Financial Group Graham Number Historical Data
The historical data trend for Woori Financial 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.
Competitive Comparison of Woori Financial Group's Graham Number
For the Banks - Regional subindustry, Woori Financial 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.
Woori Financial Group's Price-to-Graham-Number Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Woori Financial Group's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Woori Financial Group's Price-to-Graham-Number falls into.
Woori Financial Group Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Woori Financial Group's Graham Number for the fiscal year that ended in Dec. 2022 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.
Woori Financial Group (NYSE:WF) 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.
Woori Financial Group's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Sep. 2023 )
=
30.62
/
134.82
=
0.23
* 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.
Woori Financial Group Graham Number Related Terms
Thank you for viewing the detailed overview of Woori Financial Group's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Woori Financial Group (Woori Financial Group) Business Description
Woori is one of Korea's four largest commercial banking groups. It was formed in 2001 through the merger of several financially troubled banks affected by the Asian financial crisis and became temporarily 100% government-owned after a bailout. It had been the largest banking group by assets but is now number four after the government required the sale of a number of subsidiaries in 2014 in an effort to recoup taxpayer money. The government has completed the process of fully divesting itself of Woori, with Korea Deposit Insurance selling its final 1.2% stake in late 2023.
Woori Financial Group (Woori Financial Group) Headlines
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