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Keystone Positive Change Investment Trust (LSE:KPC) Graham Number : £2.16 (As of Mar. 2024)


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What is Keystone Positive Change Investment Trust 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.

As of today (2024-10-31), the stock price of Keystone Positive Change Investment Trust is £2.355. Keystone Positive Change Investment Trust's graham number for the quarter that ended in Mar. 2024 was £2.16. Therefore, Keystone Positive Change Investment Trust's Price to Graham Number ratio for today is 1.09.

The historical rank and industry rank for Keystone Positive Change Investment Trust's Graham Number or its related term are showing as below:

LSE:KPC' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.52   Med: 0.69   Max: 2.11
Current: 1.09

During the past 13 years, the highest Price to Graham Number ratio of Keystone Positive Change Investment Trust was 2.11. The lowest was 0.52. And the median was 0.69.

LSE:KPC's Price-to-Graham-Number is ranked worse than
74.44% of 1205 companies
in the Asset Management industry
Industry Median: 0.71 vs LSE:KPC: 1.09

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


Keystone Positive Change Investment Trust Graham Number Historical Data

The historical data trend for Keystone Positive Change Investment Trust'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.

* Premium members only.

Keystone Positive Change Investment Trust Graham Number Chart

Keystone Positive Change Investment Trust Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.46 - 6.38 - 2.88

Keystone Positive Change Investment Trust Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 2.87 2.16

Competitive Comparison of Keystone Positive Change Investment Trust's Graham Number

For the Asset Management subindustry, Keystone Positive Change Investment Trust'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.


Keystone Positive Change Investment Trust's Price-to-Graham-Number Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Keystone Positive Change Investment Trust's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Keystone Positive Change Investment Trust's Price-to-Graham-Number falls into.



Keystone Positive Change Investment Trust Graham Number Calculation

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

Keystone Positive Change Investment Trust's Graham Number for the fiscal year that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*2.372*0.155)
=2.88

Keystone Positive Change Investment Trust's Graham Number for the quarter that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.623*0.079)
=2.16

* 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.


Keystone Positive Change Investment Trust  (LSE:KPC) 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.

Keystone Positive Change Investment Trust's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=2.355/2.16
=1.09

* 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.


Keystone Positive Change Investment Trust Graham Number Related Terms

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Keystone Positive Change Investment Trust Business Description

Traded in Other Exchanges
Address
28 St. James's Square, Grimaldi House, London, GBR, SW1Y 4JH
Keystone Positive Change Investment Trust PLC is an asset management company. Its objective is to generate long-term capital growth and contribute to a more sustainable and inclusive world by investing in public and private companies whose products and services make a positive social or environmental impact.

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