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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.
The historical rank and industry rank for The Hongkong and Shanghai Hotels's Graham Number or its related term are showing as below:
FRA:HSG'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.55 Med: 0.58 Max: 1.97
Current: 0.77
During the past 13 years, the highest Price to Graham Number ratio of The Hongkong and Shanghai Hotels was 1.97. The lowest was 0.55. And the median was 0.58.
FRA:HSG's Price-to-Graham-Number is ranked better than 75.6% of 496
companies
in the Travel & Leisure industry
Industry Median: 1.24
vs FRA:HSG: 0.77
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
The Hongkong and Shanghai Hotels (FRA:HSG) 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.
The Hongkong and Shanghai Hotels's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
0.67
/
0.86
=
0.78
* 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.
The Hongkong and Shanghai Hotels Graham Number Related Terms
The Hongkong and Shanghai Hotels 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.
The Hongkong and Shanghai Hotels Graham Number Chart
For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels Price-to-Graham-Number vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels (FRA:HSG) has a Graham Number of €0.86 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on The Hongkong and Shanghai Hotels and its competitors. This is 48% above median its historical median of 0.58. Over the past decade, The Hongkong and Shanghai Hotels' Graham Number has ranged from 0.55 to 1.97. According to the industry distribution chart, The Hongkong and Shanghai Hotels ranks #121 out of 496 companies in the Travel & Leisure industry, placing it in the top 24.4%.
Is The Hongkong and Shanghai Hotels' Graham Number too high?
The Hongkong and Shanghai Hotels' current Graham Number of €0.86 is 48% above median its 10-year median of 0.58. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 1.97. Based on the distribution chart, The Hongkong and Shanghai Hotels ranks #121 out of 496 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' Graham Number compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Hongkong and Shanghai Hotels ranks #121 out of 496 companies for Graham Number. This places The Hongkong and Shanghai Hotels in the top 24% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.24. Historically, The Hongkong and Shanghai Hotels' own Graham Number has ranged from 0.55 to 1.97 over the past decade. 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 Travel & Leisure company?
The median Graham Number among Travel & Leisure companies is 1.24, based on 496 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. 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 The Hongkong and Shanghai Hotels and its competitors. For the Travel & Leisure industry, the median Graham Number is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hongkong and Shanghai Hotels's current Graham Number is €0.86, which is 48% above median its own 10-year median of 0.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hongkong and Shanghai Hotels stock overvalued right now?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels (FRA:HSG) is currently considered Fairly Valued. The stock's GF Value™ is €0.67, compared to a current price of €0.67 — trading right at its estimated fair value. The current Graham Number is €0.86, which is 48% above median its 10-year median of 0.58. The Hongkong and Shanghai Hotels' overall GF Score™ is 49/100 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 The Hongkong and Shanghai Hotels (FRA:HSG), the current Graham Number is €0.86 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 The Hongkong and Shanghai Hotels (FRA:HSG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued.
The current stock price of €0.67 is trading 0% below its estimated GF Value™ of €0.67.
GuruFocus considers The Hongkong and Shanghai Hotels to be Fairly Valued.
Key valuation signals for FRA:HSG:
Graham Number: €0.86 (48% above median its 10-year median of 0.58)
GF Value™: €0.67 vs. price of €0.67 (0% below fair value)
No single metric tells the full story. See the FRA:HSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hongkong and Shanghai Hotels Business Description
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
49GF Score
Get the complete analysis for FRA:HSG
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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