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Sumitomo Chemical CoFRA:SMM -1.17%59 Graham Number is €2.81 as of Mar. 2026, which is 100% below its 10-year median of 1.00. GuruFocus rates FRA:SMM with a GF Score™ of 59/100 and a GF Value™ of €1.85 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,154 Chemicals companies, Sumitomo Chemical Co ranks better than 64.47% on this metric.
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 (2026-07-25), the stock price of Sumitomo Chemical Co is €2.872. Sumitomo Chemical Co's graham number for the quarter that ended in Mar. 2026 was €2.81. Therefore, Sumitomo Chemical Co's Price to Graham Number ratio for today is 1.02.
The historical rank and industry rank for Sumitomo Chemical Co's Graham Number or its related term are showing as below:
FRA:SMM'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.64 Med: 1 Max: 2.6
Current: 1.07
During the past 13 years, the highest Price to Graham Number ratio of Sumitomo Chemical Co was 2.60. The lowest was 0.64. And the median was 1.00.
FRA:SMM's Price-to-Graham-Number is ranked better than 64.47% of 1154
companies
in the Chemicals industry
Industry Median: 1.445
vs FRA:SMM: 1.07
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Sumitomo Chemical Co (FRA:SMM) 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.
Sumitomo Chemical Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
2.872
/
2.81
=
1.02
* 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.
Sumitomo Chemical Co Graham Number Related Terms
Sumitomo Chemical Co Graham Number Historical Data
* Premium members only.
The historical data trend for Sumitomo Chemical 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.
For the Chemicals subindustry, Sumitomo Chemical 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.
Sumitomo Chemical Co Price-to-Graham-Number vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical Co'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.
Sumitomo Chemical Co (FRA:SMM) has a Graham Number of €2.81 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Sumitomo Chemical Co and its competitors. This is 181% above median its historical median of 1.00. Over the past decade, Sumitomo Chemical Co's Graham Number has ranged from 0.64 to 2.60. According to the industry distribution chart, Sumitomo Chemical Co ranks #410 out of 1154 companies in the Chemicals industry, placing it in the top 35.5%.
Is Sumitomo Chemical Co's Graham Number too high?
Sumitomo Chemical Co's current Graham Number of €2.81 is 181% above median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 2.60. Based on the distribution chart, Sumitomo Chemical Co ranks #410 out of 1154 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sumitomo Chemical Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Chemical Co's Graham Number compare to DOW?
According to the Chemicals industry distribution chart, Sumitomo Chemical Co ranks #410 out of 1154 companies for Graham Number. This puts Sumitomo Chemical Co in the upper half of its industry. The industry median Graham Number is 1.45. Historically, Sumitomo Chemical Co's own Graham Number has ranged from 0.64 to 2.60 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 Chemicals company?
The median Graham Number among Chemicals companies is 1.45, based on 1,154 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 Sumitomo Chemical Co and its competitors. For the Chemicals industry, the median Graham Number is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Chemical Co's current Graham Number is €2.81, which is 181% above median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Chemical Co (FRA:SMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.85, compared to a current price of €2.87 — trading 55.2% above its estimated fair value. The current Graham Number is €2.81, which is 181% above median its 10-year median of 1.00. Sumitomo Chemical Co's overall GF Score™ is 59/100 with 6 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 Sumitomo Chemical Co (FRA:SMM), the current Graham Number is €2.81 as of Mar. 2026. 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 Sumitomo Chemical Co (FRA:SMM) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Chemical Co stock appears to be overvalued.
The current stock price of €2.87 is trading 55.2% above its estimated GF Value™ of €1.85.
GuruFocus considers Sumitomo Chemical Co to be Significantly Overvalued.
Key valuation signals for FRA:SMM:
Graham Number: €2.81 (181% above median its 10-year median of 1.00)
GF Value™: €1.85 vs. price of €2.87 (55.2% above fair value)
No single metric tells the full story. See the FRA:SMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Chemical Co Ltd is a Japanese chemical manufacturer. The company operates through six segments. Advanced Medical Solutions covers small molecule drugs, medical oligonucleotides, and regenerative medicine contract manufacturing. Agro & Life Solutions provides pesticides, fertilizers, agricultural materials, insecticides, and feed additives. Essential & Green Materials include synthetic resins, industrial chemicals, methacrylics, aluminum, alumina, and synthetic rubber. ICT & Mobility Solutions handles optical products, semiconductor materials, touch panels, engineering plastics, and battery materials. Sumitomo Pharma focuses on small-molecule drugs, while Others include reagents, energy, plant engineering, transport, and warehousing.
59GF Score
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