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Pharma-Bio Serv (Pharma-Bio Serv) Graham Number : $0.61 (As of Jan. 2024)


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What is Pharma-Bio Serv 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 (2024-04-25), the stock price of Pharma-Bio Serv is $0.70. Pharma-Bio Serv's graham number for the quarter that ended in Jan. 2024 was $0.61. Therefore, Pharma-Bio Serv's Price to Graham Number ratio for today is 1.14.

The historical rank and industry rank for Pharma-Bio Serv's Graham Number or its related term are showing as below:

PBSV' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.61   Med: 0.9   Max: 2.35
Current: 1.15

During the past 13 years, the highest Price to Graham Number ratio of Pharma-Bio Serv was 2.35. The lowest was 0.61. And the median was 0.90.

PBSV's Price-to-Graham-Number is ranked better than
74.38% of 324 companies
in the Healthcare Providers & Services industry
Industry Median: 2.04 vs PBSV: 1.15

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


Pharma-Bio Serv Graham Number Historical Data

The historical data trend for Pharma-Bio Serv'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.

Pharma-Bio Serv Graham Number Chart

Pharma-Bio Serv Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.35 1.41 - 0.85 0.95

Pharma-Bio Serv Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 0.91 0.94 1.04 0.96 0.61

Competitive Comparison of Pharma-Bio Serv's Graham Number

For the Health Information Services subindustry, Pharma-Bio Serv'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.


Pharma-Bio Serv's Price-to-Graham-Number Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Pharma-Bio Serv's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Pharma-Bio Serv's Price-to-Graham-Number falls into.



Pharma-Bio Serv Graham Number Calculation

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

Pharma-Bio Serv's Graham Number for the fiscal year that ended in Oct. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.702*0.057)
=0.95

Pharma-Bio Serv's Graham Number for the quarter that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.616*0.027)
=0.61

* 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.


Pharma-Bio Serv  (OTCPK:PBSV) 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.

Pharma-Bio Serv's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jan. 2024 )
=0.70/0.61
=1.14

* 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.


Pharma-Bio Serv Graham Number Related Terms

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


Pharma-Bio Serv (Pharma-Bio Serv) Business Description

Traded in Other Exchanges
N/A
Address
No. 6 Road 696, Pharma-Bio Serv Building, Dorado, PRI, 00646
Pharma-Bio Serv Inc is a compliance and technology transfer services consulting firm. It also provides microbiological testing services and chemical testing services through its laboratory testing facility in Puerto Rico. It has three reportable segments: Puerto Rico technical compliance consulting which is the key revenue driver; United States technical compliance consulting; and Europe technical compliance consulting. The company offers solutions to the pharmaceutical, chemical, biotechnology, medical devices, cosmetic and food industries, and allied products companies.
Executives
Elizabeth Plaza 10 percent owner 363 DORADO BEACH EAST, DORADO PR 00646
Altura Victor Sanchez officer: President and CEO C/O PHARMA-BIO SERV, INC., 6 ROAD 696, DORADO PR 00646
San Juan Holdings 10 percent owner 255 PONCE DE LEON, SUITE 305 MCS PLAZA, SAN JUAN PR 00917
Pedro J Lasanta officer: Chief Financial Officer 373 MENDEZ VIGO, STE 110, DORADO PR 00646
Dov Perlysky director 2 LAKESIDE DRIVE WEST, LAWRENCE NY 11559
L P Venturetek 10 percent owner C/O DAVID SELENGUT ELLENOFF GROSSMAN, 370 LEXINGTON AVENUE 19TH FLOOR, NEW YORK NY 10017
Barron Partners Lp 10 percent owner 730 FIFTH AVENUE, 25TH FLOOR, NEW YORK NY 10019
Manuel O Morera officer: Chief Financial Officer 373 MENDEZ VIGO, SUITE 110, DORADO PR 00646
Mark A Fazio officer: Exec. Vice President and COO P O BOX 1026 GREEN STREET, PERKASIE PA 18944
Kirk Wheeler Michel director 209 EAST TRYON STREET, HILLSBOROUGH NC 27278
Irving L Wiesen director 1273 NORTH AVENUE, APT 1E 7, NEW ROCHELLE NY 10804
Howard Spindel director 39 BROADWAY SUITE 3300, NEW YORK NY 10028
Nelida Plaza Rodriguez officer: Vice President and Secretary G11 CALLE MADRE PERLA URB, DORADO DEL MAR, DORADO PR 00646
Krovim Llc director, 10 percent owner, officer: Manager P.O. BOX 339, LAWRENCE NY 11559

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