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DoubleDown Interactive Co (FRA:DDI) Graham Number : €17.94 (As of Sep. 2024)


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What is DoubleDown Interactive Co 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 (2024-12-15), the stock price of DoubleDown Interactive Co is €11.20. DoubleDown Interactive Co's graham number for the quarter that ended in Sep. 2024 was €17.94. Therefore, DoubleDown Interactive Co's Price to Graham Number ratio for today is 0.62.

The historical rank and industry rank for DoubleDown Interactive Co's Graham Number or its related term are showing as below:

FRA:DDI' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.46   Med: 1   Max: 1.84
Current: 0.57

During the past 6 years, the highest Price to Graham Number ratio of DoubleDown Interactive Co was 1.84. The lowest was 0.46. And the median was 1.00.

FRA:DDI's Price-to-Graham-Number is ranked better than
90.31% of 258 companies
in the Interactive Media industry
Industry Median: 1.65 vs FRA:DDI: 0.57

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


DoubleDown Interactive Co Graham Number Historical Data

The historical data trend for DoubleDown Interactive Co'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.

DoubleDown Interactive Co Graham Number Chart

DoubleDown Interactive Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial - - 10.33 11.58 14.68

DoubleDown Interactive Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 14.39 14.72 15.85 17.30 17.94

Competitive Comparison of DoubleDown Interactive Co's Graham Number

For the Electronic Gaming & Multimedia subindustry, DoubleDown Interactive 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.


DoubleDown Interactive Co's Price-to-Graham-Number Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, DoubleDown Interactive Co's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where DoubleDown Interactive Co's Price-to-Graham-Number falls into.



DoubleDown Interactive Co Graham Number Calculation

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

DoubleDown Interactive Co'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*5.171*1.851)
=14.68

DoubleDown Interactive Co's Graham Number for the quarter that ended in Sep. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*6.714*2.131)
=17.94

* 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.


DoubleDown Interactive Co  (FRA:DDI) 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.

DoubleDown Interactive Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=11.20/17.94
=0.62

* 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.


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.


DoubleDown Interactive Co Graham Number Related Terms

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DoubleDown Interactive Co Business Description

Traded in Other Exchanges
Address
152, Teheran-ro Gangnam-gu, Gangnam Finance Center, 13th Floor, Seoul, KOR, 06236
DoubleDown Interactive Co Ltd is a developer and publisher of digital games on mobile and web-based platforms. The company is the creator of multi-format interactive entertainment experiences for casual players. Its market opportunity includes casual gaming globally, which includes slots, puzzles, cards, match three, and other similar games. Within the social casino segment of casual gaming, which includes free-to-play online slots, poker, table games, and bingo. Other games developed by the company are DoubleDown Fort, DoubleDown Classic, and Ellen's Road to Riches. The company has a presence in the international market, and it derives a majority of its revenue from the United States of America.