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Rapicut Carbides (BOM:500360) Graham Number : ₹28.89 (As of Mar. 2024)


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What is Rapicut Carbides 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 (2024-06-06), the stock price of Rapicut Carbides is ₹106.45. Rapicut Carbides's graham number for the quarter that ended in Mar. 2024 was ₹28.89. Therefore, Rapicut Carbides's Price to Graham Number ratio for today is 3.68.

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

BOM:500360' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.67   Med: 0.91   Max: 3.84
Current: 3.68

During the past 13 years, the highest Price to Graham Number ratio of Rapicut Carbides was 3.84. The lowest was 0.67. And the median was 0.91.

BOM:500360's Price-to-Graham-Number is ranked worse than
88.06% of 2202 companies
in the Industrial Products industry
Industry Median: 1.44 vs BOM:500360: 3.68

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


Rapicut Carbides Graham Number Historical Data

The historical data trend for Rapicut Carbides'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.

Rapicut Carbides Graham Number Chart

Rapicut Carbides Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 28.89

Rapicut Carbides 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 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 - - - - 28.89

Competitive Comparison of Rapicut Carbides's Graham Number

For the Metal Fabrication subindustry, Rapicut Carbides'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.


Rapicut Carbides's Price-to-Graham-Number Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Rapicut Carbides's Price-to-Graham-Number distribution charts can be found below:

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



Rapicut Carbides Graham Number Calculation

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

Rapicut Carbides's Graham Number for the fiscal year that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*40.772*0.91)
=28.89

Rapicut Carbides'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*40.772*0.91)
=28.89

* 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.


Rapicut Carbides  (BOM:500360) 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.

Rapicut Carbides's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=106.45/28.89
=3.68

* 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.


Rapicut Carbides Graham Number Related Terms

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


Rapicut Carbides (BOM:500360) Business Description

Traded in Other Exchanges
N/A
Address
On National Highway BOM-AHM, Plot Number 119, GIDC Industrial Area, Ankleshwar, GJ, IND, 393 002
Rapicut Carbides Ltd is engaged in manufacturing Tungsten Carbide Tips, Inserts and other Carbide products from ore stage. It manufactures a wide range of Tungsten Carbide products such as Tungsten Carbide Tips, Tungsten Carbide Inserts, Wire Drawing Nibs, Bar and Tube drawing Pellets, Tungsten Carbide Rings, Flats, Jute Eyelets, Solid Carbide Cutters and a wide range of Tool Room Products. Geographically the company derives key revenue from India.

Rapicut Carbides (BOM:500360) Headlines

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