GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Radha Madhav Corp Ltd (BOM:532692) » Definitions » Graham Number

Radha Madhav (BOM:532692) Graham Number : ₹634.09 (As of Mar. 2024)


View and export this data going back to 2006. Start your Free Trial

What is Radha Madhav 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 (2024-06-19), the stock price of Radha Madhav is ₹195.00. Radha Madhav's graham number for the quarter that ended in Mar. 2024 was ₹634.09. Therefore, Radha Madhav's Price to Graham Number ratio for today is 0.31.

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

BOM:532692' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.31   Med: 4.11   Max: 6.95
Current: 0.31

During the past 13 years, the highest Price to Graham Number ratio of Radha Madhav was 6.95. The lowest was 0.31. And the median was 4.11.

BOM:532692's Price-to-Graham-Number is not ranked
in the Packaging & Containers industry.
Industry Median: 1.095 vs BOM:532692: 0.31

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


Radha Madhav Graham Number Historical Data

The historical data trend for Radha Madhav'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.

Radha Madhav Graham Number Chart

Radha Madhav 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 - - - - 28.06

Radha Madhav Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 - - - - 634.09

Competitive Comparison of Radha Madhav's Graham Number

For the Packaging & Containers subindustry, Radha Madhav'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.


Radha Madhav's Price-to-Graham-Number Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Radha Madhav's Price-to-Graham-Number distribution charts can be found below:

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



Radha Madhav Graham Number Calculation

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

Radha Madhav'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*106.01*0.33)
=28.06

Radha Madhav'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*106.01*168.569)
=634.09

* 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.


Radha Madhav  (BOM:532692) 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.

Radha Madhav's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=195.00/634.09
=0.31

* 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.


Radha Madhav Graham Number Related Terms

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


Radha Madhav (BOM:532692) Business Description

Traded in Other Exchanges
Address
Survey No. 50/9/A, Daman Industrial Estate, Village Kadaiya, Nani Daman, Daman and Diu, IND, 396210
Radha Madhav Corp Ltd is an India based multi-material, multi-process, multi-product packaging solutions provider. It is engaged in manufacturing variants of multilayered and functional films, providing packaging solutions in food, dairy, and pharmaceutical segments. Its principal business activities include manufacturing of plastics packaging products, such as film sheet, and other retail sales not in stores, stalls or markets. The company operates in a two segments such as Consumer and Other and Packaging Division and It generates revenue from the Consumer Division.

Radha Madhav (BOM:532692) Headlines

No Headlines