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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.
CHSTF's Price-to-Graham-Number is ranked better than 99.68% of 2198
companies
in the Industrial Products industry
Industry Median: 1.72
vs CHSTF: 0.15
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
China High Speed Transmission Equipment Group Co (OTCPK:CHSTF) 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 High Speed Transmission Equipment Group Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
0.2063
/
1.05
=
0.20
* 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 High Speed Transmission Equipment Group Co Graham Number Related Terms
China High Speed Transmission Equipment Group Co 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.
China High Speed Transmission Equipment Group Co Graham Number Chart
China High Speed Transmission Equipment Group Co Annual Data
For the Specialty Industrial Machinery subindustry, China High Speed Transmission Equipment Group Co'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 High Speed Transmission Equipment Group Co Price-to-Graham-Number vs Industrial Products Industry
* 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 High Speed Transmission Equipment Group Co (CHSTF) has a Graham Number of $1.05 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on China High Speed Transmission Equipment Group Co and its competitors. This is 44% above median its historical median of 0.73. Over the past decade, China High Speed Transmission Equipment Group Co's Graham Number has ranged from 0.15 to 1.58. According to the industry distribution chart, China High Speed Transmission Equipment Group Co ranks #7 out of 2198 companies in the Industrial Products industry, placing it in the top 0.3%.
Is China High Speed Transmission Equipment Group Co's Graham Number too high?
China High Speed Transmission Equipment Group Co's current Graham Number of $1.05 is 44% above median its 10-year median of 0.73. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 1.58. The Industrial Products industry median Graham Number is 1.72. China High Speed Transmission Equipment Group Co's value of $1.05 is 39% below this industry median. Based on the distribution chart, China High Speed Transmission Equipment Group Co ranks #7 out of 2198 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, China High Speed Transmission Equipment Group Co has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does China High Speed Transmission Equipment Group Co's Graham Number compare to GEV and ETN?
According to the Industrial Products industry distribution chart, China High Speed Transmission Equipment Group Co ranks #7 out of 2198 companies for Graham Number. This places China High Speed Transmission Equipment Group Co in the top 0% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.72. China High Speed Transmission Equipment Group Co's value of $1.05 is 39% below this benchmark. Historically, China High Speed Transmission Equipment Group Co's own Graham Number has ranged from 0.15 to 1.58 over the past decade. While the company's 10-year median is 0.73 vs. the industry median of 1.72, China High Speed Transmission Equipment Group Co has consistently been below 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 an Industrial Products company?
The median Graham Number among Industrial Products companies is 1.72, based on 2,198 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 High Speed Transmission Equipment Group Co's current Graham Number of $1.05 is 39% below 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 High Speed Transmission Equipment Group Co and its competitors. For the Industrial Products industry, the median Graham Number is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China High Speed Transmission Equipment Group Co's current Graham Number is $1.05, which is 44% above median its own 10-year median of 0.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China High Speed Transmission Equipment Group Co stock overvalued right now?
China High Speed Transmission Equipment Group Co (CHSTF) has a current Graham Number of $1.05. The stock's GF Value™ is $0.20, compared to a current price of $0.21 — trading 3.2% above its estimated fair value. The current Graham Number is $1.05, which is 44% above median its 10-year median of 0.73 and 39% below the Industrial Products industry median of 1.72. China High Speed Transmission Equipment Group Co's overall GF Score™ is 74/100 with 3 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 High Speed Transmission Equipment Group Co (CHSTF), the current Graham Number is $1.05 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 High Speed Transmission Equipment Group Co (CHSTF) Overvalued in 2026?
Based on GuruFocus' analysis, China High Speed Transmission Equipment Group Co stock appears to be overvalued.
The current stock price of $0.21 is trading 3.2% above its estimated GF Value™ of $0.20.
Key valuation signals for CHSTF:
Graham Number: $1.05 (44% above median its 10-year median of 0.73)
GF Value™: $0.20 vs. price of $0.21 (3.2% above fair value)
Industry Position: 39% below the Industrial Products median (#7 of 2198)
No single metric tells the full story. See the CHSTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China High Speed Transmission Equipment Group Co Business Description
China High Speed Transmission Equipment Group Co Ltd is engaged in researching, developing, designing, manufacturing, and distributing a wide range of mechanical transmission equipment that is used in wind power and a wide range of industrial appliances and trading of goods. Its product portfolio includes Wind Energy Gearboxes, Rail Vehicle Gearboxes, Industrial Gearboxes, New Energy Vehicle Gearboxes, GearSight System, and others. The company's segment includes Wind and industrial gear transmission equipment, which generates key revenue; the Rail transportation gear transmission equipment segment; the Trading business, and others. Geographically, the company generates a majority of its revenue from the People's Republic of China and the rest from Europe, the USA, and other countries.
74GF Score
Get the complete analysis for CHSTF
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