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The Japan Steel WorksJPSWY +2.64%77 Graham Number is $12.74 as of Mar. 2026, which is 1027% above its 10-year median of 1.13. GuruFocus rates JPSWY with a GF Score™ of 77/100 and a GF Value™ of $20.63 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,219 Industrial Products companies, The Japan Steel Works ranks worse than 57.14% 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 Japan Steel Works (OTCPK:JPSWY) 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.
The Japan Steel Works's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
24.725
/
12.65
=
1.95
* 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.
The Japan Steel Works Graham Number Related Terms
The Japan Steel Works Graham Number Historical Data
* Premium members only.
The historical data trend for The Japan Steel Works'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 Specialty Industrial Machinery subindustry, The Japan Steel 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.
The Japan Steel Works Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Japan Steel Works's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where The Japan Steel Works'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.
The Japan Steel Works (JPSWY) has a Graham Number of $12.74 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on The Japan Steel Works and its competitors. This is 1027% above median its historical median of 1.13. Over the past decade, The Japan Steel Works' Graham Number has ranged from 0.49 to 2.12. According to the industry distribution chart, The Japan Steel Works ranks #1268 out of 2219 companies in the Industrial Products industry, placing it in the top 57.1%.
Is The Japan Steel Works' Graham Number too high?
The Japan Steel Works' current Graham Number of $12.74 is 1027% above median its 10-year median of 1.13. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 2.12. The Industrial Products industry median Graham Number is 1.76. The Japan Steel Works' value of $12.74 is 623.9% above this industry median. Based on the distribution chart, The Japan Steel Works ranks #1268 out of 2219 companies in the Industrial Products industry, which is below the industry midpoint. Overall, The Japan Steel Works has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Japan Steel Works' Graham Number compare to GEV and ETN?
According to the Industrial Products industry distribution chart, The Japan Steel Works ranks #1268 out of 2219 companies for Graham Number. This places The Japan Steel Works in the lower half of its industry. The industry median Graham Number is 1.76. The Japan Steel Works' value of $12.74 is 623.9% above this benchmark. Historically, The Japan Steel Works' own Graham Number has ranged from 0.49 to 2.12 over the past decade. While the company's 10-year median is 1.13 vs. the industry median of 1.76, The Japan Steel Works 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 1.76, based on 2,219 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. The Japan Steel Works's current Graham Number of $12.74 is 623.9% 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 The Japan Steel Works and its competitors. For the Industrial Products industry, the median Graham Number is 1.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Japan Steel Works's current Graham Number is $12.74, which is 1027% above median its own 10-year median of 1.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Japan Steel Works stock overvalued right now?
Based on GuruFocus' analysis, The Japan Steel Works (JPSWY) is currently considered Modestly Overvalued. The stock's GF Value™ is $20.63, compared to a current price of $24.73 — trading 19.8% above its estimated fair value. The current Graham Number is $12.74, which is 1027% above median its 10-year median of 1.13 and 623.9% above the Industrial Products industry median of 1.76. The Japan Steel Works' overall GF Score™ is 77/100 with 2 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 The Japan Steel Works (JPSWY), the current Graham Number is $12.74 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 The Japan Steel Works (JPSWY) Overvalued in 2026?
Based on GuruFocus' analysis, The Japan Steel Works stock appears to be overvalued.
The current stock price of $24.73 is trading 19.8% above its estimated GF Value™ of $20.63.
GuruFocus considers The Japan Steel Works to be Modestly Overvalued.
Key valuation signals for JPSWY:
Graham Number: $12.74 (1027% above median its 10-year median of 1.13)
GF Value™: $20.63 vs. price of $24.73 (19.8% above fair value)
Industry Position: 623.9% above the Industrial Products median (#1268 of 2219)
No single metric tells the full story. See the JPSWY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Japan Steel Works Ltd provides industrial machinery as well as materials and engineering solutions in Japan and internationally. The company operates through two segments. The Industrial Machinery segment provides resin manufacturing and processing machinery, molding machines, defense-related equipment, and other industrial machinery. The Materials and Engineering segment covers raw material products and engineering operations. The Other segment includes the film deposition business, crystal business, and related activities. It generates the majority of its revenue from the Industrial machinery business segment.
77GF Score
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