PT Diamond Food Indonesia Tbk (ISX:DMND) Graham Number : Rp661.60 (As of Mar. 2024)

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What is PT Diamond Food Indonesia Tbk 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 (2024-06-12), the stock price of PT Diamond Food Indonesia Tbk is Rp710.00. PT Diamond Food Indonesia Tbk's graham number for the quarter that ended in Mar. 2024 was Rp661.60. Therefore, PT Diamond Food Indonesia Tbk's Price to Graham Number ratio for today is 1.07.

The historical rank and industry rank for PT Diamond Food Indonesia Tbk's Graham Number or its related term are showing as below:

ISX:DMND' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.07 Med: 1.21 Max: 1.99
Current: 1.07

During the past 8 years, the highest Price to Graham Number ratio of PT Diamond Food Indonesia Tbk was 1.99. The lowest was 1.07. And the median was 1.21.

ISX:DMND's Price-to-Graham-Number is ranked better than
58.71% of 1298 companies
in the Consumer Packaged Goods industry
Industry Median: 1.27 vs ISX:DMND: 1.07

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

PT Diamond Food Indonesia Tbk Graham Number Historical Data

The historical data trend for PT Diamond Food Indonesia Tbk'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.

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PT Diamond Food Indonesia Tbk Graham Number Chart

PT Diamond Food Indonesia Tbk Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Graham Number

Get a 7-Day Free Trial

632.39

486.69

663.95

719.62

678.75

PT Diamond Food Indonesia Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Graham Number	Get a 7-Day Free Trial															725.61	713.44	687.69	678.62	661.60

Competitive Comparison of PT Diamond Food Indonesia Tbk's Graham Number

For the Packaged Foods subindustry, PT Diamond Food Indonesia Tbk'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.

PT Diamond Food Indonesia Tbk's Price-to-Graham-Number Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Diamond Food Indonesia Tbk's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where PT Diamond Food Indonesia Tbk's Price-to-Graham-Number falls into.

PT Diamond Food Indonesia Tbk Graham Number Calculation

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

PT Diamond Food Indonesia Tbk's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	612.834	*	33.411)
=	678.75

PT Diamond Food Indonesia Tbk's Graham Number for the quarter that ended in Mar. 2024 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	619.749	*	31.39)
=	661.60

PT Diamond Food Indonesia Tbk (ISX:DMND) 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.

PT Diamond Food Indonesia Tbk's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Mar. 2024 )
	=	710.00	/	661.60
	=	1.07

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.

PT Diamond Food Indonesia Tbk Graham Number Related Terms

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PT Diamond Food Indonesia Tbk (ISX:DMND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Diamond Food Indonesia Tbk (ISX:DMND) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan KH Mas Mansyur Kav, 126TCC Batavia Tower One, 15th Floor, Unit 03 and 05, TCC Batavia Tower One, Jakarta Pusat, Jakarta, IDN, 10220

Website

https://www.diamondfoodindonesia.com

PT Diamond Food Indonesia Tbk is engaged in the manufacturing and distribution of consumer goods. Its products include dairy, confectionery, meats and seafood, bakery, groceries as well as fruits and vegetables. The company categorizes its business into two segments that are branded products and non-branded products, out of which the majority of the revenue is generated from branded products. Some of the company's brands include Biggy, Biokul, Diamond Juice, Popeye, and Magic. It also collaborates with international brands and distributes its products. Geographically the company generates the majority of revenue in Indonesia and also exports internationally.