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 Cooper-Standard Holdings's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Cooper-Standard Holdings was 1.47. The lowest was 0.71. And the median was 1.20.
CPS's Price-to-Graham-Number is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.18 * 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.
Cooper-Standard Holdings 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.
Competitive Comparison of Cooper-Standard Holdings's Graham Number
For the Auto Parts subindustry, Cooper-Standard Holdings'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.
Cooper-Standard Holdings's Price-to-Graham-Number Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Cooper-Standard Holdings's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Cooper-Standard Holdings's Price-to-Graham-Number falls into.
Cooper-Standard Holdings Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Cooper-Standard Holdings's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Cooper-Standard Holdings (NYSE:CPS) 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.
Cooper-Standard Holdings's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2023 )
=
15.43
/
N/A
=
N/A
* 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.
Cooper-Standard Holdings Graham Number Related Terms
Thank you for viewing the detailed overview of Cooper-Standard Holdings's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Cooper-Standard Holdings (Cooper-Standard Holdings) Business Description
Cooper-Standard Holdings Inc is a supplier of rubber and resin products for the automotive industry. The company produces rubber and plastic sealings, fuel and brake lines, fluid transfer hoses, and anti-vibration systems used by original equipment manufacturers and replacement markets for passenger vehicles and light trucks. The largest customers include Ford, GM, FCA, Peugeot Citroen, and Volkswagen. Cooper Standard generates the majority of its revenue with its sealing systems products such as Fortrex, dynamic and static seals, stainless steel trims, flush glass systems, and variable extrusions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CPS has been successfully added to your 