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PRAX (Praxis Precision Medicines) Graham Number : $N/A (As of Sep. 2024)


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What is Praxis Precision Medicines 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 (2024-12-15), the stock price of Praxis Precision Medicines is $70.18. Praxis Precision Medicines's graham number for the quarter that ended in Sep. 2024 was $N/A. Therefore, Praxis Precision Medicines's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for Praxis Precision Medicines's Graham Number or its related term are showing as below:

PRAX's Price-to-Graham-Number is not ranked *
in the Biotechnology industry.
Industry Median: 2
* Ranked among companies with meaningful Price-to-Graham-Number only.

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


Praxis Precision Medicines Graham Number Historical Data

The historical data trend for Praxis Precision Medicines'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.

Praxis Precision Medicines Graham Number Chart

Praxis Precision Medicines Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
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Praxis Precision Medicines 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 - - - - -

Competitive Comparison of Praxis Precision Medicines's Graham Number

For the Biotechnology subindustry, Praxis Precision Medicines'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.


Praxis Precision Medicines's Price-to-Graham-Number Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Praxis Precision Medicines's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Praxis Precision Medicines's Price-to-Graham-Number falls into.



Praxis Precision Medicines Graham Number Calculation

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

Praxis Precision Medicines'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*7.924*-18.69)
=N/A

Praxis Precision Medicines'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*21.515*-9.29)
=N/A

* 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.


Praxis Precision Medicines  (NAS:PRAX) 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.

Praxis Precision Medicines's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=70.18/N/A
=N/A

* 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.


Praxis Precision Medicines Graham Number Related Terms

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Praxis Precision Medicines Business Description

Traded in Other Exchanges
N/A
Address
99 High Street, 30th Floor, Boston, MA, USA, 02110
Praxis Precision Medicines Inc is a clinical-stage biopharmaceutical company. The firm is engaged in translating genetic insights into the development of therapies for patients affected by central nervous system disorders characterized by a neuronal excitation-inhibition imbalance. The firm's pipeline covers PRAX-114, for the treatment of a broad range of patients suffering from major depressive disorder and post-traumatic stress disorder; PRAX-944, for the treatment of Essential Tremor and Parkinson's Disease; PRAX-562, and PRAX-222, among others.
Executives
Alex Nemiroff officer: General Counsel and Secretary C/O PRAXIS PRECISION MEDICINES, INC., ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Lauren Mastrocola officer: Principal Accounting Officer C/O PRAXIS PRECISION MEDICINES, INC., ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Jill Desimone director C/O PRAXIS PRECISION MEDICINES, INC., 99 HIGH STREET, 30TH FLOOR, BOSTON MA 02110
Marcio Souza officer: Chief Executive Officer C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080
Dean J Mitchell director C/O BRISTOL MYERS SQUIBB CO, 345 PARK AVE, NEW YORK NY 10164
Timothy Edwin Kelly officer: Chief Financial Officer C/O PRAXIS PRECISION MEDICINES, INC., ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Bsof Parallel Master Fund L.p. 10 percent owner 345 PARK AVENUE, NEW YORK NY 10154
Merit Ester Cudkowicz director C/O PRAXIS PRECISION MEDICINES, INC., ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Jeffrey Chodakewitz director C/O TETRAPHASE PHARMACEUTICALS, INC., 480 ARSENAL ST., SUITE 101, WATERTOWN MA 02472
Stefan Vitorovic director C/O PRAXIS PRECISION MEDICINES, INC., ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Blackstone Holdings I/ii Gp L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
William D Young director 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Stephen A Schwarzman 10 percent owner C/O BLACKSTONE INC., 345 PARK AVE, NEW YORK NY 10154
Blackstone Inc. 10 percent owner 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Group Management L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154

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