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China Automotive SystemsCAAS -0.65%78 Graham Number is $19.77 as of Dec. 2025, which is 4843% above its 10-year median of 0.40. GuruFocus rates CAAS with a GF Score™ of 78/100 and a GF Value™ of $5.32 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 986 Vehicles & Parts companies, China Automotive Systems ranks better than 96.55% on this metric.
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 China Automotive Systems's Graham Number or its related term are showing as below:
CAAS'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.2 Med: 0.4 Max: 13.57
Current: 0.23
During the past 13 years, the highest Price to Graham Number ratio of China Automotive Systems was 13.57. The lowest was 0.20. And the median was 0.40.
CAAS's Price-to-Graham-Number is ranked better than 96.55% of 986
companies
in the Vehicles & Parts industry
Industry Median: 1.17
vs CAAS: 0.23
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
China Automotive Systems (NAS:CAAS) 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.
China Automotive Systems's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
4.56
/
19.77
=
0.23
* 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.
China Automotive Systems Graham Number Related Terms
China Automotive Systems 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.
For the Auto Parts subindustry, China Automotive Systems'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.
China Automotive Systems Price-to-Graham-Number vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where China Automotive Systems'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.
China Automotive Systems (CAAS) has a Graham Number of $19.77 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on China Automotive Systems and its competitors. This is 4843% above median its historical median of 0.40. Over the past decade, China Automotive Systems' Graham Number has ranged from 0.20 to 13.57. According to the industry distribution chart, China Automotive Systems ranks #34 out of 986 companies in the Vehicles & Parts industry, placing it in the top 3.4%.
Is China Automotive Systems' Graham Number too high?
China Automotive Systems' current Graham Number of $19.77 is 4843% above median its 10-year median of 0.40. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 13.57. The Vehicles & Parts industry median Graham Number is 1.17. China Automotive Systems' value of $19.77 is 1589.7% above this industry median. Based on the distribution chart, China Automotive Systems ranks #34 out of 986 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, China Automotive Systems has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Graham Number compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #34 out of 986 companies for Graham Number. This places China Automotive Systems in the top 3% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.17. China Automotive Systems' value of $19.77 is 1589.7% above this benchmark. Historically, China Automotive Systems' own Graham Number has ranged from 0.20 to 13.57 over the past decade. While the company's 10-year median is 0.40 vs. the industry median of 1.17, China Automotive Systems has consistently been above the industry average. 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 a Vehicles & Parts company?
The median Graham Number among Vehicles & Parts companies is 1.17, based on 986 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. China Automotive Systems's current Graham Number of $19.77 is 1589.7% 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 China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Graham Number is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Graham Number is $19.77, which is 4843% above median its own 10-year median of 0.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Automotive Systems stock overvalued right now?
Based on GuruFocus' analysis, China Automotive Systems (CAAS) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.32, compared to a current price of $4.56 — trading 14.3% below its estimated fair value. The current Graham Number is $19.77, which is 4843% above median its 10-year median of 0.40 and 1589.7% above the Vehicles & Parts industry median of 1.17. China Automotive Systems' overall GF Score™ is 78/100 with 4 warning signs to review. 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 China Automotive Systems (CAAS), the current Graham Number is $19.77 as of Dec. 2025. 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.
Is China Automotive Systems (CAAS) Overvalued in 2026?
Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued.
The current stock price of $4.56 is trading 14.3% below its estimated GF Value™ of $5.32.
GuruFocus considers China Automotive Systems to be Modestly Undervalued.
Key valuation signals for CAAS:
Graham Number: $19.77 (4843% above median its 10-year median of 0.40)
GF Value™: $5.32 vs. price of $4.56 (14.3% below fair value)
Industry Position: 1589.7% above the Vehicles & Parts median (#34 of 986)
No single metric tells the full story. See the CAAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Automotive Systems Inc is a holding company. The firm, through its subsidiary, is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series of power steering models, including rack and pinion power steering, integral power steering, electronic power steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of its revenue from China.
78GF Score
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