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Harworth Group (CHIX:HWGL) Graham Number : £2.62 (As of Jun. 2024)


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What is Harworth Group 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 (2024-10-31), the stock price of Harworth Group is £1.845. Harworth Group's graham number for the quarter that ended in Jun. 2024 was £2.62. Therefore, Harworth Group's Price to Graham Number ratio for today is 0.70.

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

CHIX:HWGl' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.14   Med: 0.54   Max: 1.91
Current: 0.7

During the past 13 years, the highest Price to Graham Number ratio of Harworth Group was 1.91. The lowest was 0.14. And the median was 0.54.

CHIX:HWGl's Price-to-Graham-Number is ranked better than
60.02% of 1123 companies
in the Real Estate industry
Industry Median: 0.82 vs CHIX:HWGl: 0.70

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


Harworth Group Graham Number Historical Data

The historical data trend for Harworth Group'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.

Harworth Group Graham Number Chart

Harworth Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.52 1.64 3.32 1.83 2.29

Harworth Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 3.98 1.82 - 2.29 2.62

Competitive Comparison of Harworth Group's Graham Number

For the Real Estate - Development subindustry, Harworth Group'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.


Harworth Group's Price-to-Graham-Number Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Harworth Group's Price-to-Graham-Number distribution charts can be found below:

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



Harworth Group Graham Number Calculation

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

Harworth Group's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*1.973*0.118)
=2.29

Harworth Group's Graham Number for the quarter that ended in Jun. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.009*0.152)
=2.62

* 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.


Harworth Group  (CHIX:HWGl) 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.

Harworth Group's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2024 )
=1.845/2.62
=0.70

* 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.


Harworth Group Graham Number Related Terms

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Harworth Group Business Description

Traded in Other Exchanges
Address
Poplar Way, Advantage House, Catcliffe, Rotherham, South Yorks, GBR, S60 5TR
Harworth Group PLC operates as a brownfield regeneration company in the North of England and the Midlands. It is organized into two operating segments: The Income Generation segment focuses on generating rental returns from the business space portfolio, rental returns and royalties from energy generation, environmental technologies and the agricultural portfolio, and income-generating streams from recycled aggregates and secondary coal products. The Capital Growth segment focuses on delivering value by developing the underlying portfolio and includes planning and development activity, value engineering, proactive asset management, and strategic land acquisitions. It generates a vast majority of its revenues from the sale of development properties.

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