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BKH (Black Hills) Graham Number : $50.02 (As of Sep. 2024)


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What is Black Hills 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 (2024-12-14), the stock price of Black Hills is $60.96. Black Hills's graham number for the quarter that ended in Sep. 2024 was $50.02. Therefore, Black Hills's Price to Graham Number ratio for today is 1.22.

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

BKH' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.04   Med: 1.58   Max: 4.18
Current: 1.22

During the past 13 years, the highest Price to Graham Number ratio of Black Hills was 4.18. The lowest was 1.04. And the median was 1.58.

BKH's Price-to-Graham-Number is ranked worse than
51.01% of 398 companies
in the Utilities - Regulated industry
Industry Median: 1.205 vs BKH: 1.22

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


Black Hills Graham Number Historical Data

The historical data trend for Black Hills'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.

Black Hills Graham Number Chart

Black Hills Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.00 40.97 43.81 47.73 49.60

Black Hills Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 48.73 49.67 51.83 51.72 50.02

Competitive Comparison of Black Hills's Graham Number

For the Utilities - Regulated Gas subindustry, Black Hills'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.


Black Hills's Price-to-Graham-Number Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Black Hills's Price-to-Graham-Number distribution charts can be found below:

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



Black Hills Graham Number Calculation

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

Black Hills'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*27.969*3.91)
=49.60

Black Hills's Graham Number for the quarter that ended in Sep. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*29.887*3.72)
=50.02

* 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.


Black Hills  (NYSE:BKH) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=60.96/50.02
=1.22

* 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.


Black Hills Graham Number Related Terms

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


Black Hills Business Description

Traded in Other Exchanges
Address
7001 Mount Rushmore Road, Rapid City, SD, USA, 57702
Black Hills Corp is a U.S.-based energy company that operates through its Electric Utilities, Gas Utilities, Corporate and Other segments. These segments operate in states in the Midwest and mountain regions in the U.S. The company's customers include residential, commercial, industrial, and municipal consumers. These customers are residential. Black Hills derives the majority of its revenue from its utility business group, specifically from electric utilities.
Executives
Rebecca B Roberts director 1000 LOUISIANA, SUITE 5800, HOUSTON TX 77002
Richard Kinzley officer: Sr VP & CFO PO BOX 1400, RAPID CITY SD 57709
Stuart A Wevik officer: Sr VP - Utility Operations PO BOX 1400, RAPID CITY SD 57709
Kathleen S Mcallister director DEEPWATER HOUSE, KINGSWELLS CAUSEWAY, PRIME FOUR BUSINESS PARK, ABERDEEN, SCOTLAND X0 AB15 8PU
Barry M Granger director PO BOX 1400, RAPID CITY SD 57709
Robert P Otto director PO BOX 1400, RAPID CITY SD 57709
Mark A Schober director
Tony A Jensen director 620 E HEARTSTRONG STREET, SUPERIOR CO 80027
Scott M Prochazka director 1111 LOUISIANA, HOUSTON TX 77002
Teresa Taylor director FIRST INTERSTATE BANCSYSTEM, INC, PO BOX 30918, BILLINGS MT 59116-0918
Michael Madison director PO BOX 5000, PINEVILLE LA 71361-5000
John B Vering director PO BOX 1400, RAPID CITY SD 57709
Steven Richard Mills director C/O ARCHER DANIELS MIDLAND CO, 4666 FARIES PARKWAY, DECATUR IL 62526
Linden R Evans officer: President and CEO PO BOX 1400, RAPID CITY SD 57709
David R Emery director, officer: Executive Chairman P O BOX 1400, RAPID CITY SD 57709-1400