Labat AfricaJSE:LAB Graham Number is R0.61 as of Nov. 2025, which is 100% below its 10-year median of 1.72. The stock has 5 warning signs investors should review. Among 602 Drug Manufacturers companies, Labat Africa ranks better than 99.67% 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.
As of today (2026-07-01), the stock price of Labat Africa is R0.05. Labat Africa's graham number for the quarter that ended in Nov. 2025 was R0.61. Therefore, Labat Africa's Price to Graham Number ratio for today is 0.08.
The historical rank and industry rank for Labat Africa's Graham Number or its related term are showing as below:
JSE:LAB'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.08 Med: 1.72 Max: 9.6
Current: 0.08
During the past 13 years, the highest Price to Graham Number ratio of Labat Africa was 9.60. The lowest was 0.08. And the median was 1.72.
JSE:LAB's Price-to-Graham-Number is ranked better than 99.67% of 602
companies
in the Drug Manufacturers industry
Industry Median: 1.5
vs JSE:LAB: 0.08
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Labat Africa (JSE:LAB) 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.
Labat Africa's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Nov. 2025 )
=
0.05
/
0.61
=
0.08
* 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.
Labat Africa Graham Number Related Terms
Labat Africa Graham Number Historical Data
* Premium members only.
The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Graham Number Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Price-to-Graham-Number vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa (JSE:LAB) has a Graham Number of R0.61 as of Nov. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Labat Africa and its competitors. This is 65% below median its historical median of 1.72. Over the past decade, Labat Africa's Graham Number has ranged from 0.08 to 9.60. According to the industry distribution chart, Labat Africa ranks #2 out of 602 companies in the Drug Manufacturers industry, placing it in the top 0.3%.
Is Labat Africa's Graham Number too high?
Labat Africa's current Graham Number of R0.61 is 65% below median its 10-year median of 1.72. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 9.60. Based on the distribution chart, Labat Africa ranks #2 out of 602 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Graham Number compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #2 out of 602 companies for Graham Number. This places Labat Africa in the top 0% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.50. Historically, Labat Africa's own Graham Number has ranged from 0.08 to 9.60 over the past decade. 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 a Drug Manufacturers company?
The median Graham Number among Drug Manufacturers companies is 1.50, based on 602 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. 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median Graham Number is 1.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Graham Number is R0.61, which is 65% below median its own 10-year median of 1.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.18, compared to a current price of R0.05 — trading 72.2% below its estimated fair value. The current Graham Number is R0.61, which is 65% below median its 10-year median of 1.72. 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 Labat Africa (JSE:LAB), the current Graham Number is R0.61 as of Nov. 2025. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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