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What is Life Healthcare Group Holdings Graham Number?
Life Healthcare Group HoldingsJSE:LHC +0.61%55 Graham Number is R12.47 as of Mar. 2026, which is 100% below its 10-year median of 2.73. GuruFocus rates JSE:LHC with a GF Score™ of 55/100 and a GF Value™ of R15.65 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 368 Healthcare Providers & Services companies, Life Healthcare Group Holdings ranks better than 79.89% 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 Life Healthcare Group Holdings's Graham Number or its related term are showing as below:
JSE:LHC'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.86 Med: 2.73 Max: 9.3
Current: 0.92
During the past 13 years, the highest Price to Graham Number ratio of Life Healthcare Group Holdings was 9.30. The lowest was 0.86. And the median was 2.73.
JSE:LHC's Price-to-Graham-Number is ranked better than 79.89% of 368
companies
in the Healthcare Providers & Services industry
Industry Median: 1.665
vs JSE:LHC: 0.92
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Life Healthcare Group Holdings (JSE:LHC) 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.
Life Healthcare Group Holdings's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
11.52
/
12.47
=
0.92
* 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.
Life Healthcare Group Holdings Graham Number Related Terms
Life Healthcare Group Holdings 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.
Life Healthcare Group Holdings Graham Number Chart
JSE:LHC vs HCA, THC, DVA: Graham Number Comparison
For the Medical Care Facilities subindustry, Life Healthcare Group Holdings'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.
Life Healthcare Group Holdings Price-to-Graham-Number vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Life Healthcare Group Holdings's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Life Healthcare Group Holdings'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.
Life Healthcare Group Holdings (JSE:LHC) has a Graham Number of R12.47 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Life Healthcare Group Holdings and its competitors. This is 357% above median its historical median of 2.73. Over the past decade, Life Healthcare Group Holdings' Graham Number has ranged from 0.86 to 9.30. According to the industry distribution chart, Life Healthcare Group Holdings ranks #74 out of 368 companies in the Healthcare Providers & Services industry, placing it in the top 20.1%.
Is Life Healthcare Group Holdings' Graham Number too high?
Life Healthcare Group Holdings' current Graham Number of R12.47 is 357% above median its 10-year median of 2.73. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 9.30. Based on the distribution chart, Life Healthcare Group Holdings ranks #74 out of 368 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Life Healthcare Group Holdings has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Life Healthcare Group Holdings' Graham Number compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Life Healthcare Group Holdings ranks #74 out of 368 companies for Graham Number. This places Life Healthcare Group Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.67. Historically, Life Healthcare Group Holdings' own Graham Number has ranged from 0.86 to 9.30 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 Healthcare Providers & Services company?
The median Graham Number among Healthcare Providers & Services companies is 1.67, based on 368 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 Life Healthcare Group Holdings and its competitors. For the Healthcare Providers & Services industry, the median Graham Number is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Healthcare Group Holdings's current Graham Number is R12.47, which is 357% above median its own 10-year median of 2.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Healthcare Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Life Healthcare Group Holdings (JSE:LHC) is currently considered Modestly Undervalued. The stock's GF Value™ is R15.65, compared to a current price of R11.52 — trading 26.4% below its estimated fair value. The current Graham Number is R12.47, which is 357% above median its 10-year median of 2.73. Life Healthcare Group Holdings' overall GF Score™ is 55/100 with 3 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 Life Healthcare Group Holdings (JSE:LHC), the current Graham Number is R12.47 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 Life Healthcare Group Holdings (JSE:LHC) Overvalued in 2026?
Based on GuruFocus' analysis, Life Healthcare Group Holdings stock appears to be undervalued.
The current stock price of R11.52 is trading 26.4% below its estimated GF Value™ of R15.65.
GuruFocus considers Life Healthcare Group Holdings to be Modestly Undervalued.
Key valuation signals for JSE:LHC:
Graham Number: R12.47 (357% above median its 10-year median of 2.73)
GF Value™: R15.65 vs. price of R11.52 (26.4% below fair value)
No single metric tells the full story. See the JSE:LHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Healthcare Group Holdings Ltd is a private healthcare provider in southern Africa, prominently serving the medically insured market. The company is in the business of providing hospital and complementary services (which include mental healthcare, acute rehabilitation, renal dialysis, oncology and diagnostics) and healthcare services. It operates via three segments: Hospitals segment (acute hospitals), the Complementary Services segment (mental health, acute rehabilitation, renal dialysis, oncology and diagnostics) and the Healthcare Services segment (Life Nkanyisa and Life Health Solutions). The majority of revenue is derived from the hospitals segment. Geographically, the company generates the maximum revenue from Southern Africa.
55GF Score
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