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Pepper MoneyASX:PPM -1.23%48 Graham Number is A$2.93 as of Dec. 2025, which is 100% below its 10-year median of 0.49. GuruFocus rates ASX:PPM with a GF Score™ of 48/100 and a GF Value™ of A$1.42 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 402 Credit Services companies, Pepper Money ranks better than 73.88% on this metric.
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 (2026-07-15), the stock price of Pepper Money is A$1.61. Pepper Money's graham number for the quarter that ended in Dec. 2025 was A$2.93. Therefore, Pepper Money's Price to Graham Number ratio for today is 0.55.
The historical rank and industry rank for Pepper Money's Graham Number or its related term are showing as below:
ASX:PPM'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.41 Med: 0.49 Max: 0.74
Current: 0.55
During the past 6 years, the highest Price to Graham Number ratio of Pepper Money was 0.74. The lowest was 0.41. And the median was 0.49.
ASX:PPM's Price-to-Graham-Number is ranked better than 73.88% of 402
companies
in the Credit Services industry
Industry Median: 0.815
vs ASX:PPM: 0.55
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Pepper Money (ASX:PPM) 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.
Pepper Money's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
1.61
/
2.93
=
0.55
* 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.
Pepper Money Graham Number Related Terms
Pepper Money Graham Number Historical Data
* Premium members only.
The historical data trend for Pepper Money'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.
For the Credit Services subindustry, Pepper Money'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.
Pepper Money Price-to-Graham-Number vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Pepper Money's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Pepper Money's Price-to-Graham-Number falls into.
* 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.
Pepper Money (ASX:PPM) has a Graham Number of A$2.93 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Pepper Money and its competitors. This is 498% above median its historical median of 0.49. Over the past decade, Pepper Money's Graham Number has ranged from 0.41 to 0.74. According to the industry distribution chart, Pepper Money ranks #105 out of 402 companies in the Credit Services industry, placing it in the top 26.1%.
Is Pepper Money's Graham Number too high?
Pepper Money's current Graham Number of A$2.93 is 498% above median its 10-year median of 0.49. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 0.74. Based on the distribution chart, Pepper Money ranks #105 out of 402 companies in the Credit Services industry, which is above the industry midpoint. Overall, Pepper Money has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pepper Money's Graham Number compare to V and MA?
According to the Credit Services industry distribution chart, Pepper Money ranks #105 out of 402 companies for Graham Number. This puts Pepper Money in the upper half of its industry. The industry median Graham Number is 0.82. Historically, Pepper Money's own Graham Number has ranged from 0.41 to 0.74 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Credit Services company?
The median Graham Number among Credit Services companies is 0.82, based on 402 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Pepper Money and its competitors. For the Credit Services industry, the median Graham Number is 0.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pepper Money's current Graham Number is A$2.93, which is 498% above median its own 10-year median of 0.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pepper Money stock overvalued right now?
Based on GuruFocus' analysis, Pepper Money (ASX:PPM) is currently considered Modestly Overvalued. The stock's GF Value™ is A$1.42, compared to a current price of A$1.61 — trading 13.4% above its estimated fair value. The current Graham Number is A$2.93, which is 498% above median its 10-year median of 0.49. Pepper Money's overall GF Score™ is 48/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Pepper Money (ASX:PPM), the current Graham Number is A$2.93 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pepper Money (ASX:PPM) Overvalued in 2026?
Based on GuruFocus' analysis, Pepper Money stock appears to be overvalued.
The current stock price of A$1.61 is trading 13.4% above its estimated GF Value™ of A$1.42.
GuruFocus considers Pepper Money to be Modestly Overvalued.
Key valuation signals for ASX:PPM:
Graham Number: A$2.93 (498% above median its 10-year median of 0.49)
GF Value™: A$1.42 vs. price of A$1.61 (13.4% above fair value)
No single metric tells the full story. See the ASX:PPM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pepper Money Ltd provides a variety of home loan solutions. The company also provides car loans, personal loans, loans for equipment, asset finance, commercial loans, and others. The company operates in three reportable segments Mortgage, Asset Finance, and Loan and Other Servicing. The maximum revenue is derived from the Asset finance segment. The Asset finance segment includes financing a range of asset types for consumer and commercial customers.
48GF Score
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