What is KBS Real Estate Investment Trust III 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.
During the past 10 years, the highest Price to Graham Number ratio of KBS Real Estate Investment Trust III was 1.36. The lowest was 1.36. And the median was 1.36.
KBSR's Price-to-Graham-Number is not ranked *
in the REITs industry.
Industry Median: 0.74 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
KBS Real Estate Investment Trust III 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.
* Premium members only.
KBS Real Estate Investment Trust III Graham Number Chart
Competitive Comparison of KBS Real Estate Investment Trust III's Graham Number
For the REIT - Office subindustry, KBS Real Estate Investment Trust III'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.
KBS Real Estate Investment Trust III's Price-to-Graham-Number Distribution in the REITs Industry
For the REITs industry and Real Estate sector, KBS Real Estate Investment Trust III's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where KBS Real Estate Investment Trust III'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.
KBS Real Estate Investment Trust III (OTCPK:KBSR) 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.
KBS Real Estate Investment Trust III's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2024 )
=
0.90
/
N/A
=
N/A
* 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.
KBS Real Estate Investment Trust III Graham Number Related Terms
Thank you for viewing the detailed overview of KBS Real Estate Investment Trust III's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
KBS Real Estate Investment Trust III Business Description
KBS Real Estate Investment Trust III Inc is a real estate investment trust. The company invests in a diverse portfolio of real estate properties. It holds investments in office properties and mixed-use office or retail properties. The investment objective is to preserve and return stockholders capital contributions and to provide the stockholders with attractive and stable cash distributions.
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