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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.
Cherng Tay Technology Co (ROCO:4767) 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.
Cherng Tay Technology Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
29.10
/
42.88
=
0.68
* 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.
Cherng Tay Technology Co Graham Number Related Terms
Cherng Tay Technology Co Graham Number Historical Data
* 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.
ROCO:4767 vs LIN, SHW, ECL: Graham Number Comparison
For the Specialty Chemicals subindustry, Cherng Tay Technology Co'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.
Cherng Tay Technology Co Price-to-Graham-Number vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cherng Tay Technology Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Cherng Tay Technology Co's Price-to-Graham-Number falls into.
* 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.
Cherng Tay Technology Co (ROCO:4767) has a Graham Number of NT$42.88 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Cherng Tay Technology Co and its competitors. According to the industry distribution chart, Cherng Tay Technology Co ranks #205 out of 1207 companies in the Chemicals industry, placing it in the top 17%.
Is Cherng Tay Technology Co's Graham Number too high?
Cherng Tay Technology Co's current Graham Number is NT$42.88. Based on the distribution chart, Cherng Tay Technology Co ranks #205 out of 1207 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Cherng Tay Technology Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cherng Tay Technology Co's Graham Number compare to LIN and SHW?
According to the Chemicals industry distribution chart, Cherng Tay Technology Co ranks #205 out of 1207 companies for Graham Number. This places Cherng Tay Technology Co in the top 17% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.43. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Chemicals company?
The median Graham Number among Chemicals companies is 1.43, based on 1,207 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Cherng Tay Technology Co and its competitors. For the Chemicals industry, the median Graham Number is 1.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherng Tay Technology Co's current Graham Number is NT$42.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherng Tay Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Cherng Tay Technology Co (ROCO:4767) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$24.18, compared to a current price of NT$29.10 — trading 20.3% above its estimated fair value. The current Graham Number is NT$42.88. Cherng Tay Technology Co's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Cherng Tay Technology Co (ROCO:4767), the current Graham Number is NT$42.88 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cherng Tay Technology Co (ROCO:4767) Overvalued in 2026?
Based on GuruFocus' analysis, Cherng Tay Technology Co stock appears to be overvalued.
The current stock price of NT$29.10 is trading 20.3% above its estimated GF Value™ of NT$24.18.
GuruFocus considers Cherng Tay Technology Co to be Modestly Overvalued.
Key valuation signals for ROCO:4767:
Graham Number: NT$42.88
GF Value™: NT$24.18 vs. price of NT$29.10 (20.3% above fair value)
No single metric tells the full story. See the ROCO:4767 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cherng Tay Technology Co Ltd is mainly engaged in the manufacturing and sale of adhesives. The Company develops hot melt adhesives and waterproofing materials, with core technologies in environmentally friendly hot melt adhesives, adhesives, waterproofing films, and waterproofing glues. These products are used in the packaging, bookmaking, footwear and waterproofing industries. The Group operates in Taiwan, Mainland China, which generates maximum revenue, India, Indonesia and Vietnam.
82GF Score
Get the complete analysis for ROCO:4767
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