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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 (2024-05-04), the stock price of Ventas is $46.79. Ventas's graham number for the quarter that ended in Mar. 2024 was $N/A. Therefore, Ventas's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Ventas's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Ventas was 10.38. The lowest was 0.90. And the median was 2.22.
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 Ventas'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.
Ventas Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Graham Number | Get a 7-Day Free Trial | 24.70 | 18.73 | - | - | - |
Ventas Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Graham Number | Get a 7-Day Free Trial | - | 6.71 | - | - | - |
For the REIT - Healthcare Facilities subindustry, Ventas'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 REITs industry and Real Estate sector, Ventas's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Ventas's Price-to-Graham-Number falls into.
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Ventas'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 | * | 17.382 | * | -0.179) |
= | N/A |
Ventas's Graham Number for the quarter that ended in Mar. 2024 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI (TTM)) |
= | sqrt of (22.5 | * | 20.652 | * | -0.285) |
= | 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.
Ventas (NYSE:VTR) 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.
Ventas's Price to Graham number Ratio for today is calculated as
Price to Graham number | = | Share Price (Today) | / | Graham number (Q: Mar. 2024 ) |
= | 46.79 | / | 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 Ventas's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Walter C Rakowich | director | 14100 E 35TH PL, AURORA CO 80011 |
Debra A Cafaro | director, officer: Chairman, President and CEO | 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654 |
Sumit Roy | director | 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025 |
Michael J Embler | director | C/O NMI HOLDINGS, INC., 2100 POWELL STREET, EMERYVILLE CA 94608 |
Robert D. Reed | director | 47 DONALD DRIVE, ORINDA CA 94563 |
James D Shelton | director | 3901 TURTLE CREEK BLVD. #12, DALLAS TX 75219 |
Richard I Gilchrist | director | 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225 |
Robert F Probst | officer: EVP, CFO and Acting CAO | 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654 |
Gregory R Liebbe | officer: SVP, Chief Accounting Officer | 500 N. HURSTBOURNE PARKWAY, SUITE 200, LOUISVILLE KY 40222 |
Maurice S Smith | director | 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654 |
Marguerite M Nader | director | 2S601 AVENUE LA TOURS, OAK BROOK IL 60523 |
Carey S. Roberts | officer: EVP and GC | C/O VENTAS, INC., 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654 |
James Justin Hutchens | officer: EVP Sr Housing North America | C/O VENTAS, INC., 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654 |
John D. Cobb | officer: SVP & Chief Investment Officer | 353 N. CLARK STREET, SUITE 3300, CHICAGO IL 60654 |
Sean P. Nolan | director | C/O INTERMUNE, INC., 3280 BAYSHORE BLVD., BRISBANE CA 94005 |
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