Harmonic Drive SystemsHSYDF -2.10%69 Graham Number is $3.46 as of Mar. 2026, which is 46% below its 10-year median of 6.36. GuruFocus rates HSYDF with a GF Score™ of 69/100 and a GF Value™ of $23.46 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 2,197 Industrial Products companies, Harmonic Drive Systems ranks worse than 97.54% 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.
The historical rank and industry rank for Harmonic Drive Systems's Graham Number or its related term are showing as below:
HSYDF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.77 Med: 6.36 Max: 24.51
Current: 14.72
During the past 13 years, the highest Price to Graham Number ratio of Harmonic Drive Systems was 24.51. The lowest was 2.77. And the median was 6.36.
HSYDF's Price-to-Graham-Number is ranked worse than 97.54% of 2197
companies
in the Industrial Products industry
Industry Median: 1.77
vs HSYDF: 14.72
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Harmonic Drive Systems (OTCPK:HSYDF) 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.
Harmonic Drive Systems's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
47.104
/
3.46
=
13.61
* 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.
Harmonic Drive Systems Graham Number Related Terms
Harmonic Drive Systems 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.
For the Specialty Industrial Machinery subindustry, Harmonic Drive Systems'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.
Harmonic Drive Systems Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harmonic Drive Systems's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Harmonic Drive Systems'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.
Harmonic Drive Systems (HSYDF) has a Graham Number of $3.46 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Harmonic Drive Systems and its competitors. This is 46% below median its historical median of 6.36. Over the past decade, Harmonic Drive Systems' Graham Number has ranged from 2.77 to 24.51. According to the industry distribution chart, Harmonic Drive Systems ranks #2143 out of 2197 companies in the Industrial Products industry, placing it in the top 97.5%.
Is Harmonic Drive Systems' Graham Number too high?
Harmonic Drive Systems' current Graham Number of $3.46 is 46% below median its 10-year median of 6.36. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 24.51. The Industrial Products industry median Graham Number is 1.77. Harmonic Drive Systems' value of $3.46 is 95.5% above this industry median. Based on the distribution chart, Harmonic Drive Systems ranks #2143 out of 2197 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Harmonic Drive Systems has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harmonic Drive Systems' Graham Number compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Harmonic Drive Systems ranks #2143 out of 2197 companies for Graham Number. This places Harmonic Drive Systems in the lower half of its industry. The industry median Graham Number is 1.77. Harmonic Drive Systems' value of $3.46 is 95.5% above this benchmark. Historically, Harmonic Drive Systems' own Graham Number has ranged from 2.77 to 24.51 over the past decade. While the company's 10-year median is 6.36 vs. the industry median of 1.77, Harmonic Drive Systems has consistently been above the industry average. 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 an Industrial Products company?
The median Graham Number among Industrial Products companies is 1.77, based on 2,197 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. Harmonic Drive Systems's current Graham Number of $3.46 is 95.5% above the industry median. 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 Harmonic Drive Systems and its competitors. For the Industrial Products industry, the median Graham Number is 1.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harmonic Drive Systems's current Graham Number is $3.46, which is 46% below median its own 10-year median of 6.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harmonic Drive Systems stock overvalued right now?
Based on GuruFocus' analysis, Harmonic Drive Systems (HSYDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.46, compared to a current price of $47.10 — trading 100.8% above its estimated fair value. The current Graham Number is $3.46, which is 46% below median its 10-year median of 6.36 and 95.5% above the Industrial Products industry median of 1.77. Harmonic Drive Systems' overall GF Score™ is 69/100 with 10 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 Harmonic Drive Systems (HSYDF), the current Graham Number is $3.46 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 Harmonic Drive Systems (HSYDF) Overvalued in 2026?
Based on GuruFocus' analysis, Harmonic Drive Systems stock appears to be overvalued.
The current stock price of $47.10 is trading 100.8% above its estimated GF Value™ of $23.46.
GuruFocus considers Harmonic Drive Systems to be Significantly Overvalued.
Key valuation signals for HSYDF:
Graham Number: $3.46 (46% below median its 10-year median of 6.36)
GF Value™: $23.46 vs. price of $47.10 (100.8% above fair value)
Industry Position: 95.5% above the Industrial Products median (#2143 of 2197)
No single metric tells the full story. See the HSYDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harmonic Drive Systems manufactures and sells high-precision reduction gears (harmonic reducers) under the Harmonic Drive brand as well as other mechatronics products, including rotary actuators, linear actuators, and AC servo motors. The company also provides planetary gear speed reducers under the AccuDrive and Harmonic Planetary brands. Its products are used in industrial robots, semiconductor production equipment, and other high-precision equipment. HDS was founded in 1970 and is headquartered in Tokyo, Japan.
69GF Score
Get the complete analysis for HSYDF
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