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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 Cassava Sciences is $21.73. Cassava Sciences's graham number for the quarter that ended in Dec. 2023 was $N/A. Therefore, Cassava Sciences's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Cassava Sciences's Graham Number or its related term are showing as below:
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
The historical data trend for Cassava Sciences'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.
Cassava Sciences Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Graham Number | Get a 7-Day Free Trial | - | - | - | - | - |
Cassava Sciences Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Graham Number | Get a 7-Day Free Trial | - | - | - | - | - |
For the Biotechnology subindustry, Cassava Sciences'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.
For the Biotechnology industry and Healthcare sector, Cassava Sciences's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Cassava Sciences's Price-to-Graham-Number falls into.
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Cassava Sciences's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI) |
= | sqrt of (22.5 | * | 3.251 | * | -2.32) |
= | N/A |
Cassava Sciences's Graham Number for the quarter that ended in Dec. 2023 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI (TTM)) |
= | sqrt of (22.5 | * | 3.251 | * | -2.32) |
= | N/A |
* 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.
Cassava Sciences (NAS:SAVA) 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.
Cassava Sciences's Price to Graham number Ratio for today is calculated as
Price to Graham number | = | Share Price (Today) | / | Graham number (Q: Dec. 2023 ) |
= | 21.73 | / | N/A | |
= | N/A |
* 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.
Thank you for viewing the detailed overview of Cassava Sciences's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Sanford Robertson | director | ONE LETTERMAN DRIVE, BUILDING C SUITE 410, SAN FRANCISCO CA 94129 |
Richard Barry | director | 285 MARGALITA DRIVE, SAN RAFAEL CA 94901 |
Robert Christopher Cook | officer: SVP & General Counsel | 6801 N. CAPITAL OF TEXAS HWY, BUILDING 1, SUITE 300, AUSTIN TX 78731 |
James William Kupiec | officer: Chief Clinical Dev. Officer | 7801 N CAPITAL OF TEXAS HIGHWAY, SUITE 260, AUSTIN TX 78731 |
Eric Schoen | officer: Chief Financial Officer | 7801 N. CAPITAL OF TX HWY, SUITE 260, AUSTIN TX 78731 |
Remi Barbier | director, 10 percent owner, officer: CEO, Chairman of the Board | |
Armistice Capital Master Fund Ltd. | 10 percent owner | C/O ARMISTICE CAPITAL, LLC, 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
Armistice Capital, Llc | 10 percent owner | 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
Steven Boyd | 10 percent owner | 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
O Donnell Michael J | director | |
Robert Z Gussin | director | |
Scannon Patrick J Md Phd | director | C/O XOMA, LTD., 2910 SEVENTH STREET, BERKELEY CA 94710 |
Saira Ramasastry | director | 501 CANAL BLVD., RICHMOND CA 94804 |
Nadav Friedmann | director, officer: Chief Scientific Officer | |
Sabretooth Master Fund, L.p. | 10 percent owner | 405 LEXINGTON AVENUE, 50TH FLOOR, NEW YORK NY 10174 |
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