GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Nortech Systems Inc (NAS:NSYS) » Definitions » Graham Number

NSYS (Nortech Systems) Graham Number : $21.64 (As of Sep. 2024)


View and export this data going back to 1993. Start your Free Trial

What is Nortech Systems 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 (2024-12-11), the stock price of Nortech Systems is $12.01. Nortech Systems's graham number for the quarter that ended in Sep. 2024 was $21.64. Therefore, Nortech Systems's Price to Graham Number ratio for today is 0.55.

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

NSYS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.36   Med: 0.76   Max: 3.21
Current: 0.55

During the past 13 years, the highest Price to Graham Number ratio of Nortech Systems was 3.21. The lowest was 0.36. And the median was 0.76.

NSYS's Price-to-Graham-Number is ranked better than
94.92% of 374 companies
in the Medical Devices & Instruments industry
Industry Median: 1.9 vs NSYS: 0.55

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


Nortech Systems Graham Number Historical Data

The historical data trend for Nortech Systems'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.

Nortech Systems Graham Number Chart

Nortech Systems 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 - - 13.46 12.63 26.33

Nortech Systems Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 13.45 26.33 26.45 25.68 21.64

Competitive Comparison of Nortech Systems's Graham Number

For the Medical Devices subindustry, Nortech Systems'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.


Nortech Systems's Price-to-Graham-Number Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Nortech Systems's Price-to-Graham-Number distribution charts can be found below:

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



Nortech Systems Graham Number Calculation

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

Nortech Systems'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*12.945*2.38)
=26.33

Nortech Systems'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*12.793*1.627)
=21.64

* 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.


Nortech Systems  (NAS:NSYS) 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.

Nortech Systems's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=12.01/21.64
=0.55

* 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.


Nortech Systems Graham Number Related Terms

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


Nortech Systems Business Description

Traded in Other Exchanges
N/A
Address
7550 Meridian Circle North, Suite 150, Maple Grove, MN, USA, 55369
Nortech Systems Inc is a United States-based electronic manufacturing services company. It offers value-added engineering, technical and manufacturing services and support including project management, design, testing, prototyping, manufacturing, supply chain management, and post-market services. The company's manufacturing and engineering services include complete medical devices, printed circuit board assemblies, wire and cable assemblies, and complex higher-level electro-mechanical assemblies. It operates in the Medical, Aerospace, Defense and Industrial markets with key revenue coming from Medical device and product manufacturing and related engineering services.
Executives
Amy S. Fredregill director 7550 MERIDIAN CIRCLE N., SUITE # 150, MAPLE GROVE MN 55369
Jose Antonio Peris director 7550 MERIDIAN CIRCLE N., SUITE # 150, MAPLE GROVE MN 55369
David B Kunin director 7201 METRO BOULEVARD, MINNEAPOLIS MN 55439
David J. Graff director 7550 MERIDIAN CIRCLE N., SUITE 150, MAPLE GROVE MN 55369
Daniel Ramon Everingham 10 percent owner 617 COUNTRY VIEW LANE, GARLAND TX 75043
Jay D Miller director 7550 MERIDIAN CIR N, SUITE 150, MAPLE GROVE MN 55369
Christopher Dean Jones officer: CFO 7550 MERIDIAN CIRCLE N., SUITE 150, MAPLE GROVE MN 55369
Stacy A Kruse director 7401 BOONE AVENUE NORTH, BROOKLYN PARK MN 55428
Philip Irving Smith director 4503 BROWNDALE AVENUE, EDINA MN 55424
Dan Sachs director 7550 MERIDIAN CIRCLE N., MAPLE GROVE MN 55369
Steven J Rosenstone director 7550 MERIDIAN CIR N, SUITE 150, MAPLE GROVE MN 55369
Heidi B Grange officer: Senior Vice President of HR 7550 MERIDIAN CIRCLE N, MAPLE GROVE MN 55369
John Lindeen officer: Sr VP - Global Operations 7550 MERIDIAN CIRCLE N, SUITE 150, MAPLE GROVE MN 55369
Beck Constance officer: Chief Financial Officer NORTECH SYSTEMS INCORPORATED, 7550 MERDIAN CIRCLE N, MAPLE GROVE MN 55369
Matt Mahmood officer: Chief Operating Officer 7550 MERIDIAN CIRCLE N, SUITE 150, MAPLE GROVE MN 55369

Nortech Systems Headlines