LHSW (Lianhe Sowell International Group) Graham Number: $7.04 (As of Sep. 2025) — 50% Above Median

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Director of Data and Quant Analytics at GuruFocus
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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LHSW Lianhe Sowell International Group Ltd LHSW
20 GF Score
Price $2.21
! 5 Warning Signs
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What is Lianhe Sowell International Group Graham Number?

Lianhe Sowell International Group LHSW -13.84% 20 Graham Number is $7.04 as of Sep. 2025, which is 50% above its 10-year median of 4.69. GuruFocus rates LHSW with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 1,479 Software companies, Lianhe Sowell International Group ranks better than 97.9% 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 (2026-07-26), the stock price of Lianhe Sowell International Group is $2.21. Lianhe Sowell International Group's graham number for the quarter that ended in Sep. 2025 was $7.04. Therefore, Lianhe Sowell International Group's Price to Graham Number ratio for today is 0.31.

The historical rank and industry rank for Lianhe Sowell International Group's Graham Number or its related term are showing as below:

LHSW' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.31   Med: 4.69   Max: 4.69
Current: 0.31

During the past 4 years, the highest Price to Graham Number ratio of Lianhe Sowell International Group was 4.69. The lowest was 0.31. And the median was 4.69.

LHSW's Price-to-Graham-Number is ranked better than
97.9% of 1479 companies
in the Software industry
Industry Median: 1.85 vs LHSW: 0.31

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


Lianhe Sowell International Group  (NAS:LHSW) 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.

Lianhe Sowell International Group's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2025 )
=2.21/7.04
=0.31

* 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.


Lianhe Sowell International Group Graham Number Related Terms


Lianhe Sowell International Group Graham Number Historical Data

* Premium members only.

The historical data trend for Lianhe Sowell International Group'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.

Lianhe Sowell International Group Graham Number Chart

Lianhe Sowell International Group Annual Data
Trend Mar22 Mar23 Mar24 Mar25
Graham Number
0.00 3.33 6.86 8.70

Lianhe Sowell International Group Semi-Annual Data
Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
Graham Number Get a 7-Day Free Trial 6.55 6.86 7.20 8.77 7.04

LHSW vs HUBC, TGCB, OLB: Graham Number Comparison

For the Software - Infrastructure subindustry, Lianhe Sowell International Group'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.


Lianhe Sowell International Group Price-to-Graham-Number vs Software Industry

For the Software industry and Technology sector, Lianhe Sowell International Group's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Lianhe Sowell International Group's Price-to-Graham-Number falls into.


LHSW
20GF Score
Lianhe Sowell International Group Ltd LHSW
Graham Number is just one metric. See GF Score™, valuation, warning signs, and more.
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Lianhe Sowell International Group Graham Number Calculation

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

Lianhe Sowell International Group's Graham Number for the fiscal year that ended in Mar. 2025 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*3.555*0.947)
=8.70

Lianhe Sowell International Group's Graham Number for the quarter that ended in Sep. 2025 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*5.288*0.417)
=7.04

* 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.

Frequently Asked Questions Learn more about Graham Number →
What does a Graham Number of $7.04 mean?
Lianhe Sowell International Group (LHSW) has a Graham Number of $7.04 as of Sep. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Lianhe Sowell International Group and its competitors. This is 50% above median its historical median of 4.69. Over the past decade, Lianhe Sowell International Group's Graham Number has ranged from 0.31 to 4.69. According to the industry distribution chart, Lianhe Sowell International Group ranks #31 out of 1479 companies in the Software industry, placing it in the top 2.1%.
Is Lianhe Sowell International Group's Graham Number too high?
Lianhe Sowell International Group's current Graham Number of $7.04 is 50% above median its 10-year median of 4.69. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 4.69. The Software industry median Graham Number is 1.85. Lianhe Sowell International Group's value of $7.04 is 280.5% above this industry median. Based on the distribution chart, Lianhe Sowell International Group ranks #31 out of 1479 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's Graham Number compare to HUBC and TGCB?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #31 out of 1479 companies for Graham Number. This places Lianhe Sowell International Group in the top 2% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.85. Lianhe Sowell International Group's value of $7.04 is 280.5% above this benchmark. Historically, Lianhe Sowell International Group's own Graham Number has ranged from 0.31 to 4.69 over the past decade. While the company's 10-year median is 4.69 vs. the industry median of 1.85, Lianhe Sowell International Group 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 a Software company?
The median Graham Number among Software companies is 1.85, based on 1,479 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. Lianhe Sowell International Group's current Graham Number of $7.04 is 280.5% 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 Lianhe Sowell International Group and its competitors. For the Software industry, the median Graham Number is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhe Sowell International Group's current Graham Number is $7.04, which is 50% above median its own 10-year median of 4.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current Graham Number of $7.04. The current Graham Number is $7.04, which is 50% above median its 10-year median of 4.69 and 280.5% above the Software industry median of 1.85. Lianhe Sowell International Group's overall GF Score™ is 20/100 with 5 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 Lianhe Sowell International Group (LHSW), the current Graham Number is $7.04 as of Sep. 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.

Lianhe Sowell International Group Business Description

Address No. 3388 Binhai Avenue, 15th Floor, Sannuo Smart Building, Binhai Community, Nanshan District, Shenzhen, CHN
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
20GF Score

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$2.21
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