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Wisdom Education International Holdings Co (HKSE:06068) Graham Number : HK$0.58 (As of Aug. 2024)


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What is Wisdom Education International Holdings 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 (2025-05-02), the stock price of Wisdom Education International Holdings Co is HK$0.114. Wisdom Education International Holdings Co's graham number for the quarter that ended in Aug. 2024 was HK$0.58. Therefore, Wisdom Education International Holdings Co's Price to Graham Number ratio for today is 0.03.

The historical rank and industry rank for Wisdom Education International Holdings Co's Graham Number or its related term are showing as below:

HKSE:06068' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.03   Med: 1.42   Max: 2.62
Current: 0.03

During the past 11 years, the highest Price to Graham Number ratio of Wisdom Education International Holdings Co was 2.62. The lowest was 0.03. And the median was 1.42.

HKSE:06068's Price-to-Graham-Number is ranked better than
99.42% of 171 companies
in the Education industry
Industry Median: 1.36 vs HKSE:06068: 0.03

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


Wisdom Education International Holdings Co Graham Number Historical Data

The historical data trend for Wisdom Education International Holdings 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.

Wisdom Education International Holdings Co Graham Number Chart

Wisdom Education International Holdings Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.85 - 0.49 0.76 0.59

Wisdom Education International Holdings Co Semi-Annual Data
Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25
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 0.52 0.77 0.74 0.58 4.31

Competitive Comparison of Wisdom Education International Holdings Co's Graham Number

For the Education & Training Services subindustry, Wisdom Education International Holdings 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.


Wisdom Education International Holdings Co's Price-to-Graham-Number Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Wisdom Education International Holdings Co's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Wisdom Education International Holdings Co's Price-to-Graham-Number falls into.


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Wisdom Education International Holdings Co Graham Number Calculation

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

Wisdom Education International Holdings Co's Graham Number for the fiscal year that ended in Aug. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.302*0.051)
=0.59

Wisdom Education International Holdings Co's Graham Number for the quarter that ended in Aug. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.302*2.566)
=4.18

* 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.


Wisdom Education International Holdings Co  (HKSE:06068) 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.

Wisdom Education International Holdings Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Aug. 2024 )
=0.114/4.18
=0.03

* 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.


Wisdom Education International Holdings Co Graham Number Related Terms

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Wisdom Education International Holdings Co Business Description

Traded in Other Exchanges
Address
No. 68 Guangming Da Dao, Dongcheng District, Dongguan, CHN
Wisdom Education International Holdings Co Ltd is a private education group operating premium primary and secondary schools in China. Its service line includes School-related supply chain business and comprehensive educational services out of which it generates the majority of its revenue from the School-related supply chain business. Geographically it generates key revenue from the Mainland, PRC.
Executives
Liu Xuebin 2101 Beneficial owner
Li Suwen 2101 Beneficial owner
Bright Education (holdings) Co. Limited 2101 Beneficial owner
Bright Education Investment Co. Limited 2101 Beneficial owner

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