GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Krishival Foods Ltd (NSE:KRISHIVAL) » Definitions » Graham Number

Krishival Foods (NSE:KRISHIVAL) Graham Number : ₹77.19 (As of Sep. 2023)


View and export this data going back to 2022. Start your Free Trial

What is Krishival Foods 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 (2024-06-13), the stock price of Krishival Foods is ₹230.00. Krishival Foods's graham number for the quarter that ended in Sep. 2023 was ₹77.19. Therefore, Krishival Foods's Price to Graham Number ratio for today is 2.98.

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

NSE:KRISHIVAL' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.94   Med: 5.45   Max: 7.99
Current: 2.98

During the past 5 years, the highest Price to Graham Number ratio of Krishival Foods was 7.99. The lowest was 2.94. And the median was 5.45.

NSE:KRISHIVAL's Price-to-Graham-Number is ranked worse than
85.05% of 1298 companies
in the Consumer Packaged Goods industry
Industry Median: 1.27 vs NSE:KRISHIVAL: 2.98

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


Krishival Foods Graham Number Historical Data

The historical data trend for Krishival Foods'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.

Krishival Foods Graham Number Chart

Krishival Foods Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
7.99 9.14 8.63 28.40 49.78

Krishival Foods Semi-Annual Data
Mar19 Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Graham Number Get a 7-Day Free Trial - 28.33 34.40 49.70 77.19

Competitive Comparison of Krishival Foods's Graham Number

For the Packaged Foods subindustry, Krishival Foods'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.


Krishival Foods's Price-to-Graham-Number Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Krishival Foods's Price-to-Graham-Number distribution charts can be found below:

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



Krishival Foods Graham Number Calculation

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

Krishival Foods's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*32.676*3.371)
=49.78

Krishival Foods's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*57.19*4.63)
=77.19

* 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.


Krishival Foods  (NSE:KRISHIVAL) 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.

Krishival Foods's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=230.00/77.19
=2.98

* 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.


Krishival Foods Graham Number Related Terms

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


Krishival Foods (NSE:KRISHIVAL) Business Description

Traded in Other Exchanges
N/A
Address
Saki Vihar Road, 1309, Lodha Supremus Powai, Opposite MTNL Office, Mumbai, MH, IND, 400072
Krishival Foods Ltd is engaged in processing raw cashew nuts into finished cashew kernels in different flavors. It primarily caters to the domestic market with a network of more than thirty distributors across India. In addition to processing raw cashews, we are also engaged in the business of organic manure which is prepared by using by-products like husk and other biodegradable material left after the processing of the raw cashews.

Krishival Foods (NSE:KRISHIVAL) Headlines

No Headlines