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Lion Selection Group (ASX:LSX) Graham Number : A$0.33 (As of Jul. 2024)


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What is Lion Selection Group 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 (2024-12-15), the stock price of Lion Selection Group is A$0.56. Lion Selection Group's graham number for the quarter that ended in Jul. 2024 was A$0.33. Therefore, Lion Selection Group's Price to Graham Number ratio for today is 1.67.

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

ASX:LSX' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.26   Med: 0.32   Max: 1.7
Current: 1.7

During the past 11 years, the highest Price to Graham Number ratio of Lion Selection Group was 1.70. The lowest was 0.26. And the median was 0.32.

ASX:LSX's Price-to-Graham-Number is ranked worse than
65.23% of 512 companies
in the Metals & Mining industry
Industry Median: 1.16 vs ASX:LSX: 1.70

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Lion Selection Group Graham Number Historical Data

The historical data trend for Lion Selection Group'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.

Lion Selection Group Graham Number Chart

Lion Selection Group Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.29 1.73 - 0.94 0.33

Lion Selection Group Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jan24 Jul24
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 1.06 0.94 0.21 0.17 0.33

Competitive Comparison of Lion Selection Group's Graham Number

For the Gold subindustry, Lion Selection Group'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.


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

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

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



Lion Selection Group Graham Number Calculation

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

Lion Selection Group's Graham Number for the fiscal year that ended in Jul. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.623*0.008)
=0.33

Lion Selection Group's Graham Number for the quarter that ended in Jul. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.623*0.008)
=0.33

* 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.


Lion Selection Group  (ASX:LSX) 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.

Lion Selection Group's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jul. 2024 )
=0.56/0.33
=1.67

* 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.


Lion Selection Group Graham Number Related Terms

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Lion Selection Group Business Description

Traded in Other Exchanges
N/A
Address
175 Flinders Street, Level 2, Melbourne, VIC, AUS, 3000
Lion Selection Group Ltd is a mining investment company. The company invests in junior resource companies providing venture capital to carefully selected mining and exploration companies with outstanding management and development projects. Lion invests only in mining and exploration companies and projects with gold and base metal activities in Australia, Africa, Asia and the Americas. Its project includes Pani Gold Project.

Lion Selection Group Headlines

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