Otofarma SpAMIL:OTO 16 Graham Number is €1.28 as of Dec. 2024. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 402 Medical Devices & Instruments companies, Otofarma SpA ranks worse than 58.46% 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 (2026-07-13), the stock price of Otofarma SpA is €2.70. Otofarma SpA's graham number for the quarter that ended in Dec. 2024 was €1.28. Therefore, Otofarma SpA's Price to Graham Number ratio for today is 2.10.
The historical rank and industry rank for Otofarma SpA's Graham Number or its related term are showing as below:
MIL:OTO'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0 Med: 0 Max: 2.11
Current: 2.11
During the past 2 years, the highest Price to Graham Number ratio of Otofarma SpA was 2.11. The lowest was 0.00. And the median was 0.00.
MIL:OTO's Price-to-Graham-Number is ranked worse than 58.46% of 402
companies
in the Medical Devices & Instruments industry
Industry Median: 1.775
vs MIL:OTO: 2.11
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Otofarma SpA (MIL:OTO) 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.
Otofarma SpA's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2024 )
=
2.70
/
1.28
=
2.10
* 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.
Otofarma SpA Graham Number Related Terms
Otofarma SpA Graham Number Historical Data
* Premium members only.
The historical data trend for Otofarma SpA'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.
Otofarma SpA Graham Number Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Graham Number
0.88
1.28
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Graham Number
0.00
1.28
MIL:OTO vs ABT, SYK, MDT: Graham Number Comparison
For the Medical Devices subindustry, Otofarma SpA'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.
Otofarma SpA Price-to-Graham-Number vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Otofarma SpA'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.
Otofarma SpA (MIL:OTO) has a Graham Number of €1.28 as of Dec. 2024. The Graham Number values a company based on its per-share earnings and book value. View historical data on Otofarma SpA and its competitors. According to the industry distribution chart, Otofarma SpA ranks #235 out of 402 companies in the Medical Devices & Instruments industry, placing it in the top 58.5%.
Is Otofarma SpA's Graham Number too high?
Otofarma SpA's current Graham Number is €1.28. Based on the distribution chart, Otofarma SpA ranks #235 out of 402 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Graham Number compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #235 out of 402 companies for Graham Number. This places Otofarma SpA in the lower half of its industry. The industry median Graham Number is 1.78. 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 Medical Devices & Instruments company?
The median Graham Number among Medical Devices & Instruments companies is 1.78, based on 402 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. 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median Graham Number is 1.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current Graham Number is €1.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Graham Number of €1.28. The current Graham Number is €1.28. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign 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 Otofarma SpA (MIL:OTO), the current Graham Number is €1.28 as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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