Federal Screw Works (Federal Screw Works) Graham Number : $N/A (As of Dec. 2004)

Federal Screw Works Graham Number Chart

Federal Screw Works Annual Data
	Trend	Jun95	Jun96	Jun97	Jun98	Jun99	Jun00	Jun01	Jun02	Jun03	Jun04
Graham Number		Get a 7-Day Free Trial					62.71	48.90	42.09	42.41	26.70

Federal Screw Works Quarterly Data
	Mar00	Jun00	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04
Graham Number	Get a 7-Day Free Trial															36.32	33.14	29.12	13.28	-

Competitive Comparison of Federal Screw Works's Graham Number

For the Tools & Accessories subindustry, Federal Screw Works'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.

Federal Screw Works's Price-to-Graham-Number Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Federal Screw Works's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Federal Screw Works's Price-to-Graham-Number falls into.

Federal Screw Works Graham Number Calculation

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

Federal Screw Works's Graham Number for the fiscal year that ended in Jun. 2004 is calculated as

Federal Screw Works's Graham Number for the quarter that ended in Dec. 2004 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.

Federal Screw Works  (OTCPK:FSCR) 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.

Federal Screw Works's Price to Graham number Ratio for today 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.

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.

Federal Screw Works Graham Number Related Terms

Thank you for viewing the detailed overview of Federal Screw Works's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.

Federal Screw Works (Federal Screw Works) Business Description