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 Sun Hung Kai Properties is $9.198. Sun Hung Kai Properties's graham number for the quarter that ended in Dec. 2023 was $24.70. Therefore, Sun Hung Kai Properties's Price to Graham Number ratio for today is 0.37.
The historical rank and industry rank for Sun Hung Kai Properties's Graham Number or its related term are showing as below:
SUHJY'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.36 Med: 0.52 Max: 0.8
Current: 0.37
During the past 13 years, the highest Price to Graham Number ratio of Sun Hung Kai Properties was 0.80. The lowest was 0.36. And the median was 0.52.
SUHJY's Price-to-Graham-Number is ranked better than 83.47% of 1137
companies
in the Real Estate industry
Industry Median: 0.77
vs SUHJY: 0.37
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Sun Hung Kai Properties Graham Number Historical Data
The historical data trend for Sun Hung Kai Properties'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 Sun Hung Kai Properties's Graham Number
For the Real Estate - Development subindustry, Sun Hung Kai Properties'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.
Sun Hung Kai Properties's Price-to-Graham-Number Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Sun Hung Kai Properties's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Sun Hung Kai Properties's Price-to-Graham-Number falls into.
Sun Hung Kai Properties Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Sun Hung Kai Properties's Graham Number for the fiscal year that ended in Jun. 2023 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.
Sun Hung Kai Properties (OTCPK:SUHJY) 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.
Sun Hung Kai Properties's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2023 )
=
9.198
/
24.70
=
0.37
* 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.
Sun Hung Kai Properties Graham Number Related Terms
Thank you for viewing the detailed overview of Sun Hung Kai Properties's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Sun Hung Kai Properties (Sun Hung Kai Properties) Business Description
Sun Hung Kai Properties is a diversified real estate developer in Hong Kong with a core focus on the residential, retail and office real estate segment. Most of its business is based in Hong Kong where it is a leading private housing developer and holds a portfolio of high-quality retail and office assets for rental income. The company also invests in other listed entities, including telecommunication company, SmarTone and data center provider, SUNeVision. The Kwok family is the controlling shareholder, with a stake of more than 40%.
Sun Hung Kai Properties (Sun Hung Kai Properties) Headlines
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