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SciQuest (SciQuest) Graham Number : $3.30 (As of Mar. 2016)


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What is SciQuest 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 (2024-05-11), the stock price of SciQuest is $17.745. SciQuest's graham number for the quarter that ended in Mar. 2016 was $3.30. Therefore, SciQuest's Price to Graham Number ratio for today is 5.38.

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

SQI's Price-to-Graham-Number is not ranked *
in the Software industry.
Industry Median: 2.24
* 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.


SciQuest Graham Number Historical Data

The historical data trend for SciQuest'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.

SciQuest Graham Number Chart

SciQuest Annual Data
Trend Dec02 Dec03 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.29 - - - 2.48

SciQuest Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
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 - - 1.59 2.48 3.30

Competitive Comparison of SciQuest's Graham Number

For the Software - Application subindustry, SciQuest'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.


SciQuest's Price-to-Graham-Number Distribution in the Software Industry

For the Software industry and Technology sector, SciQuest's Price-to-Graham-Number distribution charts can be found below:

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



SciQuest Graham Number Calculation

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

SciQuest's Graham Number for the fiscal year that ended in Dec. 2015 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*3.898*0.07)
=2.48

SciQuest's Graham Number for the quarter that ended in Mar. 2016 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*4.023*0.12)
=3.30

* 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.


SciQuest  (NAS:SQI) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2016 )
=17.745/3.30
=5.38

* 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.


SciQuest Graham Number Related Terms

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


SciQuest (SciQuest) Business Description

Traded in Other Exchanges
N/A
Address
SciQuest Inc was incorporated in November, 1995. The Company provides cloud-based business automation solutions for spend management. Its solutions include spend analytics solutions that cleanse and classify spend data from a wide variety of sources and formats putting data and analytics to work to drive and measure cost savings; sourcing solutions that create events, manage bids and award contracts automatically to simplify and optimize the bidding process; supplier management solutions that facilitate on-boarding, maintaining and managing supplier relationships and give visibility into which suppliers are able to support goals; contract lifecycle management solutions that automate the contract lifecycle from contract authoring, automated workflow approvals to a fully searchable archive of executed contracts; procurement solutions that automate the purchasing process and drive contract compliance; inventory management solutions that facilitate finding, sourcing and tracking chemicals and research supplies; accounts payable solutions that automate the invoice processing and vendor payment processes; and a supplier network that provides a single platform for all supplier interactions. Its spend management solutions provide a return on investment for its customers by facilitating the reduction of spending on goods and services, enhancing visibility and control over spending decisions and practices as well as optimizing the efficiency of key business processes. The procurement, supplier management and accounts payable solutions leverage its managed Company Supplier Network, which facilitates its customers doing business with many thousands of suppliers and spending billions of dollars annually. The Company delivers cloud-based solutions using a Software-as-a-Service, or SaaS, model. The Company offers its customers various services including Client Partners, Supplier Enablement Services, Implementation Services, Customer Support, and Business Process Optimization Services. The Company competes with relatively small specialty software vendors, large ERP vendors and internally developed and maintained solutions. Specialty vendors or niche providers that compete with one or more or the Company's solutions, including Aravo, Basware, BravoSolution, Coupa, Determine, ESM Solutions, GXS, Hubwoo, OB10, Perfect Commerce, Periscope, Verian and Zycus; and Enterprise software application vendors, including SAP AG, Oracle, IBM, Infor and Workday.
Executives
Jeffrey T Barber director 6501 WESTON PARKWAY, SUITE 200 CARY NC 27513
Timothy Buckley director C/O RED HAT, INC, 1801 VARSITY DRIVE, RALEIGH NC 27606
Rudy Howard officer: Chief Financial Officer 322 WINDCHASE LANE, WILMINGTON NC 28409
Noel J Fenton director C/O TRINITY VENTURES, 325 SHARON PARK DR., #458, MENLO PARK CA 94025
Intersouth Affiliates V Lp 10 percent owner 406 BLACKWELL STREET, SUITE 200, DURHAM NC 27701
Intersouth Partners Vi Lp 10 percent owner
Intersouth Partners V, L.p. 10 percent owner 406 BLACKWELL STREET, SUITE 200, DURHAM NC 27701

SciQuest (SciQuest) Headlines

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