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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.
The historical rank and industry rank for Redwood Monthlyome Fund's Graham Number or its related term are showing as below:
BVPIF's Price-to-Graham-Number is not ranked *
in the Asset Management industry.
Industry Median: 0.705 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Redwood Monthlyome Fund (OTCPK:BVPIF) 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.
Redwood Monthlyome Fund's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2017 )
=
7.535
/
10.28
=
0.73
* 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.
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.
Redwood Monthlyome Fund Graham Number Related Terms
Redwood Monthlyome Fund Graham Number Historical Data
* 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.
BVPIF vs MDLY, GARS, ICMB: Graham Number Comparison
For the Asset Management subindustry, Redwood Monthlyome Fund'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.
Redwood Monthlyome Fund Price-to-Graham-Number vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Redwood Monthlyome Fund's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Redwood Monthlyome Fund's Price-to-Graham-Number falls into.
* 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.
Redwood Monthlyome Fund (BVPIF) has a Graham Number of $10.28 as of Dec. 2017. The Graham Number values a company based on its per-share earnings and book value. View historical data on Redwood Monthlyome Fund and its competitors.
Is Redwood Monthlyome Fund's Graham Number too high?
Redwood Monthlyome Fund's current Graham Number is $10.28. The Asset Management industry median Graham Number is 0.71. Redwood Monthlyome Fund's value of $10.28 is 1358.2% above this industry median.
How does Redwood Monthlyome Fund's Graham Number compare to MDLY and GARS?
Redwood Monthlyome Fund's Graham Number of $10.28 can be compared against companies in the Asset Management industry. The industry median Graham Number is 0.71. Redwood Monthlyome Fund's value of $10.28 is 1358.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for an Asset Management company?
The median Graham Number among Asset Management companies is 0.71, based on 1,170 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Redwood Monthlyome Fund's current Graham Number of $10.28 is 1358.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Redwood Monthlyome Fund and its competitors. For the Asset Management industry, the median Graham Number is 0.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Monthlyome Fund's current Graham Number is $10.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Monthlyome Fund stock overvalued right now?
Redwood Monthlyome Fund (BVPIF) has a current Graham Number of $10.28. The current Graham Number is $10.28 and 1358.2% above the Asset Management industry median of 0.71. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Redwood Monthlyome Fund (BVPIF), the current Graham Number is $10.28 as of Dec. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Redwood Monthly Income Fund is a closed-end investment trust. Its investment objectives are to provide Unitholders with the benefits of a high level of monthly income, together with the opportunity for capital appreciation. The Fund seeks to achieve its Investment Objectives through active asset and sector allocation and by investing in those income-producing securities that the Sub-Advisor believes represent the weighting to achieve the Investment Objectives. The Fund has exposure to a diversified portfolio consisting of income-producing securities, including but not limited to income trusts, dividend-paying common shares, convertible debt, preferred shares and investment-grade fixed income investments.
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