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GCCL Construction & Realities (BOM:531953) Graham Number : ₹9.73 (As of Mar. 2024)


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What is GCCL Construction & Realities 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 (2024-05-27), the stock price of GCCL Construction & Realities is ₹130.85. GCCL Construction & Realities's graham number for the quarter that ended in Mar. 2024 was ₹9.73. Therefore, GCCL Construction & Realities's Price to Graham Number ratio for today is 13.45.

The historical rank and industry rank for GCCL Construction & Realities's Graham Number or its related term are showing as below:

BOM:531953' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 13.26   Med: 23.88   Max: 58.16
Current: 13.45

During the past 11 years, the highest Price to Graham Number ratio of GCCL Construction & Realities was 58.16. The lowest was 13.26. And the median was 23.88.

BOM:531953's Price-to-Graham-Number is not ranked
in the Construction industry.
Industry Median: 1.01 vs BOM:531953: 13.45

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


GCCL Construction & Realities Graham Number Historical Data

The historical data trend for GCCL Construction & Realities'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.

GCCL Construction & Realities Graham Number Chart

GCCL Construction & Realities 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 5.48 2.25 8.50 7.24 9.87

GCCL Construction & Realities 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 6.54 - 7.23 - 9.73

Competitive Comparison of GCCL Construction & Realities's Graham Number

For the Engineering & Construction subindustry, GCCL Construction & Realities'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.


GCCL Construction & Realities's Price-to-Graham-Number Distribution in the Construction Industry

For the Construction industry and Industrials sector, GCCL Construction & Realities's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where GCCL Construction & Realities's Price-to-Graham-Number falls into.



GCCL Construction & Realities Graham Number Calculation

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

GCCL Construction & Realities'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*12.02*0.36)
=9.87

GCCL Construction & Realities'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*12.02*0.35)
=9.73

* 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.


GCCL Construction & Realities  (BOM:531953) 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.

GCCL Construction & Realities's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=130.85/9.73
=13.45

* 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.


GCCL Construction & Realities Graham Number Related Terms

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


GCCL Construction & Realities (BOM:531953) Business Description

Traded in Other Exchanges
N/A
Address
A-115, Siddhi Vinayak Towers, Behind DCP Office, Off S.G. Highway, Makarba, Ahmedabad, GJ, IND, 380051
GCCL Construction & Realities Ltd is a real estate development company in Gujarat. It is engaged in the construction business of residential and commercial complexes. It has developed sophisticated real estate projects in both commercial and corporate divisions. The company's services include acquisition, design and development, construction, marketing, and sales. It has also constructed a variety of structures for corporates including corporate offices.

GCCL Construction & Realities (BOM:531953) Headlines

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