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Liberty Kenya Holdings (NAI:LBTY) Graham Number : KES19.87 (As of Dec. 2023)


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What is Liberty Kenya Holdings 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 (2024-12-15), the stock price of Liberty Kenya Holdings is KES6.30. Liberty Kenya Holdings's graham number for the quarter that ended in Dec. 2023 was KES19.87. Therefore, Liberty Kenya Holdings's Price to Graham Number ratio for today is 0.32.

The historical rank and industry rank for Liberty Kenya Holdings's Graham Number or its related term are showing as below:

NAI:LBTY' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.19   Med: 0.7   Max: 1.2
Current: 0.32

During the past 13 years, the highest Price to Graham Number ratio of Liberty Kenya Holdings was 1.20. The lowest was 0.19. And the median was 0.70.

NAI:LBTY's Price-to-Graham-Number is ranked better than
93.2% of 397 companies
in the Insurance industry
Industry Median: 0.88 vs NAI:LBTY: 0.32

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


Liberty Kenya Holdings Graham Number Historical Data

The historical data trend for Liberty Kenya Holdings'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.

Liberty Kenya Holdings Graham Number Chart

Liberty Kenya Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.87 19.00 6.83 11.20 19.87

Liberty Kenya Holdings Semi-Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.87 19.00 6.83 11.20 19.87

Competitive Comparison of Liberty Kenya Holdings's Graham Number

For the Insurance - Diversified subindustry, Liberty Kenya Holdings'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.


Liberty Kenya Holdings's Price-to-Graham-Number Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Liberty Kenya Holdings's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Liberty Kenya Holdings's Price-to-Graham-Number falls into.



Liberty Kenya Holdings Graham Number Calculation

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

Liberty Kenya Holdings'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*14.39*1.22)
=19.87

Liberty Kenya Holdings's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*14.39*1.22)
=19.87

* 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.


Liberty Kenya Holdings  (NAI:LBTY) 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.

Liberty Kenya Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=6.30/19.87
=0.32

* 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.


Liberty Kenya Holdings Graham Number Related Terms

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Liberty Kenya Holdings Business Description

Traded in Other Exchanges
N/A
Address
Liberty House, Processional Way, P. O. Box 30364, Nairobi, KEN, 00100
Liberty Kenya Holdings Ltd is an insurance company. It offers long-term insurance products and services to individual and corporate markets. Its products include life insurance, health insurance, and short-term insurance. Its insurance contracts are categorized as long-term and general insurance businesses depending on the duration of risk. The group is organized into segments as follows: Long-term business; General businesses and Holding company.

Liberty Kenya Holdings Headlines

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