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Premier Roadlines (NSE:PRLIND) Graham Number : ₹57.81 (As of Sep. 2024)


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What is Premier Roadlines 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 (2025-05-03), the stock price of Premier Roadlines is ₹89.95. Premier Roadlines's graham number for the quarter that ended in Sep. 2024 was ₹57.81. Therefore, Premier Roadlines's Price to Graham Number ratio for today is 2.12.

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

NSE:PRLIND' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.56   Med: 2.29   Max: 2.29
Current: 1.56

During the past 3 years, the highest Price to Graham Number ratio of Premier Roadlines was 2.29. The lowest was 1.56. And the median was 2.29.

NSE:PRLIND's Price-to-Graham-Number is ranked worse than
73.32% of 772 companies
in the Transportation industry
Industry Median: 0.97 vs NSE:PRLIND: 1.56

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


Premier Roadlines Graham Number Historical Data

The historical data trend for Premier Roadlines'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 Roadlines Graham Number Chart

Premier Roadlines Annual Data
Trend Mar21 Mar22 Mar23
Graham Number
10.33 18.44 29.00

Premier Roadlines Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Sep24
Graham Number - - - 24.80 57.81

Competitive Comparison of Premier Roadlines's Graham Number

For the Integrated Freight & Logistics subindustry, Premier Roadlines'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 Roadlines's Price-to-Graham-Number Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Premier Roadlines's Price-to-Graham-Number distribution charts can be found below:

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


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Premier Roadlines Graham Number Calculation

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

Premier Roadlines'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*11.81*3.166)
=29.00

Premier Roadlines's Graham Number for the quarter that ended in Sep. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*34.436*2.324)
=42.43

* 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 Roadlines  (NSE:PRLIND) 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 Roadlines's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=89.95/42.43
=2.12

* 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 Roadlines Graham Number Related Terms

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


Premier Roadlines Business Description

Traded in Other Exchanges
N/A
Address
Unit No. 501, 5th Floor, Plot No. 4B, Tower A, Nextra, Mayur Vihar, Phase-I Extension, East Delhi, Delhi, IND, 110091
Premier Roadlines Ltd is engaged in providing logistics solutions to businesses, particularly surface transportation of goods. It is a goods transport agency providing general transport services, project logistics, and over-dimensional/overweight contracted integrated logistics services General Logistics. It mainly serves B2B customers under the Contract Logistics division. Its services are Project Transportation, Over Dimensional Cargo, Integrated Logistics Services, Fleet Rentals, Break Bulk, and Value Added Services. It operates in Transport operations as a single segment.

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