GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » HusCompagniet AS (LTS:0A5T) » Definitions » Graham Number

HusCompagniet AS (LTS:0A5T) Graham Number : kr4.06 (As of Jun. 2024)


View and export this data going back to 2020. Start your Free Trial

What is HusCompagniet AS 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 (2024-09-24), the stock price of HusCompagniet AS is kr128.80. HusCompagniet AS's graham number for the quarter that ended in Jun. 2024 was kr4.06. Therefore, HusCompagniet AS's Price to Graham Number ratio for today is 31.70.

The historical rank and industry rank for HusCompagniet AS's Graham Number or its related term are showing as below:

LTS:0A5T' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 4.7   Med: 7.02   Max: 16.01
Current: 16

During the past 7 years, the highest Price to Graham Number ratio of HusCompagniet AS was 16.01. The lowest was 4.70. And the median was 7.02.

LTS:0A5T's Price-to-Graham-Number is ranked worse than
96.2% of 79 companies
in the Homebuilding & Construction industry
Industry Median: 0.96 vs LTS:0A5T: 16.00

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


HusCompagniet AS Graham Number Historical Data

The historical data trend for HusCompagniet AS'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.

HusCompagniet AS Graham Number Chart

HusCompagniet AS Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial - - - - 6.62

HusCompagniet AS Semi-Annual Data
Dec17 Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 12.47 6.62 4.06

Competitive Comparison of HusCompagniet AS's Graham Number

For the Residential Construction subindustry, HusCompagniet AS'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.


HusCompagniet AS's Price-to-Graham-Number Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, HusCompagniet AS's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where HusCompagniet AS's Price-to-Graham-Number falls into.



HusCompagniet AS Graham Number Calculation

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

HusCompagniet AS's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*2.194*0.887)
=6.62

HusCompagniet AS's Graham Number for the quarter that ended in Jun. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.557*0.287)
=4.06

* 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.


HusCompagniet AS  (LTS:0A5T) 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.

HusCompagniet AS's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2024 )
=128.80/4.06
=31.70

* 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.


HusCompagniet AS Graham Number Related Terms

Thank you for viewing the detailed overview of HusCompagniet AS's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


HusCompagniet AS Business Description

Traded in Other Exchanges
Address
Plutovej 3, Horsens, DNK, 8700
HusCompagniet A/S is a house builder in the Nordic region. It is principally engaged in the construction and sale of single-family-houses in Denmark and Sweden. It delivers high quality single-family houses with great value for money. The company's operating segment include Detached houses; Semi-detached houses in Denmark and Swedish business. It generates maximum revenue from Detached houses in Denmark. The detached houses in Denmark segment comprise brick houses built on site and plots.

HusCompagniet AS Headlines

No Headlines