GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Group 6 Metals Ltd (ASX:G6M) » Definitions » Graham Number

Group 6 Metals (ASX:G6M) Graham Number : A$N/A (As of Dec. 2023)


View and export this data going back to 1967. Start your Free Trial

What is Group 6 Metals 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 (2024-12-13), the stock price of Group 6 Metals is A$0.025. Group 6 Metals's graham number for the quarter that ended in Dec. 2023 was A$N/A. Therefore, Group 6 Metals's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for Group 6 Metals's Graham Number or its related term are showing as below:

ASX:G6M's Price-to-Graham-Number is not ranked *
in the Metals & Mining industry.
Industry Median: 1.16
* 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.


Group 6 Metals Graham Number Historical Data

The historical data trend for Group 6 Metals'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.

Group 6 Metals Graham Number Chart

Group 6 Metals Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Group 6 Metals Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - - - - -

Competitive Comparison of Group 6 Metals's Graham Number

For the Other Industrial Metals & Mining subindustry, Group 6 Metals'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.


Group 6 Metals's Price-to-Graham-Number Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Group 6 Metals's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Group 6 Metals's Price-to-Graham-Number falls into.



Group 6 Metals Graham Number Calculation

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

Group 6 Metals's Graham Number for the fiscal year that ended in Jun. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.073*-0.03)
=N/A

Group 6 Metals'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*0.072*-0.021)
=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.


Group 6 Metals  (ASX:G6M) 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.

Group 6 Metals's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=0.025/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.


Group 6 Metals Graham Number Related Terms

Thank you for viewing the detailed overview of Group 6 Metals's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Group 6 Metals Business Description

Traded in Other Exchanges
N/A
Address
Level 26, 259 George Street, Suite 26.01, GPO Box 5154, Sydney, NSW, AUS, 2001
Group 6 Metals Ltd, formerly King Island Scheelite Ltd operates in the mining industry. It focuses on the redevelopment of its 100% Dolphin tungsten project in King Island, Tasmania. The company's exploration activities are located solely in Australia.

Group 6 Metals Headlines

No Headlines