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 Cybercom Group AB is kr3.00. Cybercom Group AB's graham number for the quarter that ended in Sep. 2015 was kr0.98. Therefore, Cybercom Group AB's Price to Graham Number ratio for today is 3.05.
The historical rank and industry rank for Cybercom Group AB's Graham Number or its related term are showing as below:
OSTO:CYBE'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 3 Med: 115.77 Max: 223.44
Current: 3
During the past 13 years, the highest Price to Graham Number ratio of Cybercom Group AB was 223.44. The lowest was 3.00. And the median was 115.77.
OSTO:CYBE's Price-to-Graham-Number is not ranked
in the Software industry.
Industry Median: 2.12
vs OSTO:CYBE: 3.00
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Cybercom Group AB Graham Number Historical Data
The historical data trend for Cybercom Group AB'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.
Competitive Comparison of Cybercom Group AB's Graham Number
For the Information Technology Services subindustry, Cybercom Group AB'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.
Cybercom Group AB's Price-to-Graham-Number Distribution in the Software Industry
For the Software industry and Technology sector, Cybercom Group AB's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Cybercom Group AB's Price-to-Graham-Number falls into.
Cybercom Group AB Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Cybercom Group AB's Graham Number for the fiscal year that ended in Dec. 2014 is calculated as
* 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.
Cybercom Group AB (OSTO:CYBE) 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.
Cybercom Group AB's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Sep. 2015 )
=
3.00
/
0.98
=
3.05
* 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.
Cybercom Group AB Graham Number Related Terms
Thank you for viewing the detailed overview of Cybercom Group AB's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Cybercom Group AB (OSTO:CYBE) Business Description
Cybercom Group AB is an information technology security consultancy firm. The company manages portals and provides electronic services to its customers. It offers a range of services available via mobile phone. The company also provides security, embedded systems, and telecom management. The company's portal services extend to web sites, extranets, intranets, communities, and mobile solutions. It analyzes a company's purpose, competition, target groups, services, and technical requirements before redesigning its portal. The company provides software solutions for media and electronic business. It maintains customer's portals and networks. Its mobile offerings are solutions for application, portal, payment, device management, internet advisory, use experience, and software office. For applications, it provides framework that provides development of mobile clients and support systems. The mobile portal solution creates a mobile equivalent of a customer's web site. The payment solutions include several payment services and methods. The device management offering facilitates distribution of content and firmware over the internet and over the air. The internet advisory services include consultation and support implementation of mobile strategies. It also provides extensive security offerings for a company intranet, portal, and networks. These products include identity and access management, IT forensics, and security verification. The company also handles physical hardware and computers.
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