GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Premier Polyfilm Ltd (NSE:PREMIERPOL) » Definitions » Graham Number

Premier Polyfilm (NSE:PREMIERPOL) Graham Number : ₹99.80 (As of Mar. 2024)


View and export this data going back to 1995. Start your Free Trial

What is Premier Polyfilm 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 (2024-06-20), the stock price of Premier Polyfilm is ₹214.80. Premier Polyfilm's graham number for the quarter that ended in Mar. 2024 was ₹99.80. Therefore, Premier Polyfilm's Price to Graham Number ratio for today is 2.15.

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

NSE:PREMIERPOL' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.52   Med: 1.06   Max: 2.25
Current: 2.16

During the past 13 years, the highest Price to Graham Number ratio of Premier Polyfilm was 2.25. The lowest was 0.52. And the median was 1.06.

NSE:PREMIERPOL's Price-to-Graham-Number is ranked worse than
70.82% of 1148 companies
in the Chemicals industry
Industry Median: 1.42 vs NSE:PREMIERPOL: 2.16

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


Premier Polyfilm Graham Number Historical Data

The historical data trend for Premier Polyfilm'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.

Premier Polyfilm Graham Number Chart

Premier Polyfilm Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.16 48.42 56.24 66.56 99.85

Premier Polyfilm Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 66.56 - 85.59 - 99.80

Competitive Comparison of Premier Polyfilm's Graham Number

For the Specialty Chemicals subindustry, Premier Polyfilm'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.


Premier Polyfilm's Price-to-Graham-Number Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Premier Polyfilm's Price-to-Graham-Number distribution charts can be found below:

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



Premier Polyfilm Graham Number Calculation

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

Premier Polyfilm's Graham Number for the fiscal year that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*45.077*9.83)
=99.85

Premier Polyfilm'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*45.077*9.82)
=99.80

* 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.


Premier Polyfilm  (NSE:PREMIERPOL) 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.

Premier Polyfilm's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=214.80/99.80
=2.15

* 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.


Premier Polyfilm Graham Number Related Terms

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


Premier Polyfilm (NSE:PREMIERPOL) Business Description

Traded in Other Exchanges
Address
Sahibabad Industrial Area, 40/1A, Site IV, Sahibabad, Ghaziabad, UP, IND, 201010
Premier Polyfilm Ltd is engaged in the manufacturing and export of calendared PVC products. Its operating segment is manufacturing and sale of PVC films and sheets, and thus generates entire revenue from it. The products of the company include PVC flooring, PVC sheeting, PVC flexible film, calendared leather cloth, humidity barrier, PVC Geomembrane, printed and technical flooring, high voltage insulated mats, and others. It serves various sectors such as agriculture, automobiles, building and construction, electrical and electronics, food and pharmaceuticals, sports and leisure, and others.

Premier Polyfilm (NSE:PREMIERPOL) Headlines

No Headlines