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Senco Gold (BOM:543936) Graham Number : ₹283.25 (As of Sep. 2023)


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What is Senco Gold 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 (2024-05-13), the stock price of Senco Gold is ₹875.10. Senco Gold's graham number for the quarter that ended in Sep. 2023 was ₹283.25. Therefore, Senco Gold's Price to Graham Number ratio for today is 3.09.

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

BOM:543936' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.18   Med: 2.18   Max: 3.09
Current: 3.09

During the past 10 years, the highest Price to Graham Number ratio of Senco Gold was 3.09. The lowest was 2.18. And the median was 2.18.

BOM:543936's Price-to-Graham-Number is ranked worse than
81.88% of 712 companies
in the Retail - Cyclical industry
Industry Median: 1.28 vs BOM:543936: 3.09

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


Senco Gold Graham Number Historical Data

The historical data trend for Senco Gold'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.

Senco Gold Graham Number Chart

Senco Gold Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 108.36 136.19 122.52 187.61 231.46

Senco Gold Semi-Annual Data
Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Sep22 Mar23 Sep23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 187.95 231.03 - 231.46 283.25

Competitive Comparison of Senco Gold's Graham Number

For the Luxury Goods subindustry, Senco Gold'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.


Senco Gold's Price-to-Graham-Number Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Senco Gold's Price-to-Graham-Number distribution charts can be found below:

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



Senco Gold Graham Number Calculation

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

Senco Gold's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*119.739*19.885)
=231.46

Senco Gold's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*158.683*22.471)
=283.25

* 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.


Senco Gold  (BOM:543936) 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.

Senco Gold's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=875.10/283.25
=3.09

* 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.


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.


Senco Gold Graham Number Related Terms

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


Senco Gold (BOM:543936) Business Description

Traded in Other Exchanges
Address
A.J.C. Bose Road, Unit no. 1001, 10th floor, 41A, Diamond Prestige, Kolkata, WB, IND, 700 017
Senco Gold Ltd is a pan-India jewellery retail company with a history of more than five decades and has a fourth-generation entrepreneur in the jewellery industry as its Promoter. The company primarily sell gold and diamond jewellery and also sell jewellery made of silver, platinum and precious and semi-precious stones and other metals. Its other offerings also include costume jewellery, gold and silver coins and utensils made of silver. Its products are sold under the Senco Gold & Diamonds tradename, through multiple channels, including its 75 Company Operated Showrooms and 61 Franchisee Showrooms and various online platforms, including its website.

Senco Gold (BOM:543936) Headlines

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