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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.
LSE:CPIC'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.46 Med: 0.73 Max: 1.75
Current: 0.5
During the past 13 years, the highest Price to Graham Number ratio of China Pacific Insurance (Group) Co was 1.75. The lowest was 0.46. And the median was 0.73.
LSE:CPIC's Price-to-Graham-Number is ranked better than 86.42% of 427
companies
in the Insurance industry
Industry Median: 0.95
vs LSE:CPIC: 0.50
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
China Pacific Insurance (Group) Co (LSE:CPIC) 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.
China Pacific Insurance (Group) Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
22.80
/
45.16
=
0.50
* 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.
China Pacific Insurance (Group) Co Graham Number Related Terms
China Pacific Insurance (Group) Co 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.
China Pacific Insurance (Group) Co Graham Number Chart
LSE:CPIC vs AFL, MET, PRU: Graham Number Comparison
For the Insurance - Life subindustry, China Pacific Insurance (Group) Co'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.
China Pacific Insurance (Group) Co Price-to-Graham-Number vs Insurance Industry
For the Insurance industry and Financial Services sector, China Pacific Insurance (Group) Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where China Pacific Insurance (Group) Co'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.
China Pacific Insurance (Group) Co (LSE:CPIC) has a Graham Number of $45.16 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on China Pacific Insurance (Group) Co and its competitors. This is 6086% above median its historical median of 0.73. Over the past decade, China Pacific Insurance (Group) Co's Graham Number has ranged from 0.46 to 1.75. According to the industry distribution chart, China Pacific Insurance (Group) Co ranks #58 out of 427 companies in the Insurance industry, placing it in the top 13.6%.
Is China Pacific Insurance (Group) Co's Graham Number too high?
China Pacific Insurance (Group) Co's current Graham Number of $45.16 is 6086% above median its 10-year median of 0.73. Over the past 10 years, this metric has ranged from a low of 0.46 to a high of 1.75. The Insurance industry median Graham Number is 0.95. China Pacific Insurance (Group) Co's value of $45.16 is 4653.7% above this industry median. Based on the distribution chart, China Pacific Insurance (Group) Co ranks #58 out of 427 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, China Pacific Insurance (Group) Co has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does China Pacific Insurance (Group) Co's Graham Number compare to AFL and MET?
According to the Insurance industry distribution chart, China Pacific Insurance (Group) Co ranks #58 out of 427 companies for Graham Number. This places China Pacific Insurance (Group) Co in the top 14% of its industry — outperforming the majority of peers. The industry median Graham Number is 0.95. China Pacific Insurance (Group) Co's value of $45.16 is 4653.7% above this benchmark. Historically, China Pacific Insurance (Group) Co's own Graham Number has ranged from 0.46 to 1.75 over the past decade. While the company's 10-year median is 0.73 vs. the industry median of 0.95, China Pacific Insurance (Group) Co 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 Insurance company?
The median Graham Number among Insurance companies is 0.95, based on 427 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. China Pacific Insurance (Group) Co's current Graham Number of $45.16 is 4653.7% 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 China Pacific Insurance (Group) Co and its competitors. For the Insurance industry, the median Graham Number is 0.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Pacific Insurance (Group) Co's current Graham Number is $45.16, which is 6086% above median its own 10-year median of 0.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Pacific Insurance (Group) Co stock overvalued right now?
China Pacific Insurance (Group) Co (LSE:CPIC) has a current Graham Number of $45.16. The stock's GF Value™ is $28.41, compared to a current price of $22.80 — trading 19.7% below its estimated fair value. The current Graham Number is $45.16, which is 6086% above median its 10-year median of 0.73 and 4653.7% above the Insurance industry median of 0.95. China Pacific Insurance (Group) Co's overall GF Score™ is 68/100. 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 China Pacific Insurance (Group) Co (LSE:CPIC), the current Graham Number is $45.16 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 China Pacific Insurance (Group) Co (LSE:CPIC) Overvalued in 2026?
Based on GuruFocus' analysis, China Pacific Insurance (Group) Co stock appears to be undervalued.
The current stock price of $22.80 is trading 19.7% below its estimated GF Value™ of $28.41.
Key valuation signals for LSE:CPIC:
Graham Number: $45.16 (6086% above median its 10-year median of 0.73)
GF Value™: $28.41 vs. price of $22.80 (19.7% below fair value)
Industry Position: 4653.7% above the Insurance median (#58 of 427)
No single metric tells the full story. See the LSE:CPIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1988, China Pacific Insurance is China's third-largest life insurer and third-largest general property and casualty insurer, with headquarters in Beijing. The company strives to create an integrated financial services platform that encompasses insurance, banking, and asset management. CPIC's major shareholders are state-owned companies related to the Shanghai government.
68GF Score
Get the complete analysis for LSE:CPIC
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