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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.
Shandong Gold Mining Co (OTCPK:SDGMF) 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.
Shandong Gold Mining Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
2.69
/
2.30
=
1.17
* 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.
Shandong Gold Mining Co Graham Number Related Terms
Shandong Gold Mining 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.
For the Gold subindustry, Shandong Gold Mining 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.
Shandong Gold Mining Co Price-to-Graham-Number vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Shandong Gold Mining Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Shandong Gold Mining 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.
Shandong Gold Mining Co (SDGMF) has a Graham Number of $2.30 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Shandong Gold Mining Co and its competitors. According to the industry distribution chart, Shandong Gold Mining Co ranks #488 out of 632 companies in the Metals & Mining industry, placing it in the top 77.2%.
Is Shandong Gold Mining Co's Graham Number too high?
Shandong Gold Mining Co's current Graham Number is $2.30. The Metals & Mining industry median Graham Number is 1.28. Shandong Gold Mining Co's value of $2.30 is 79.7% above this industry median. Based on the distribution chart, Shandong Gold Mining Co ranks #488 out of 632 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Shandong Gold Mining Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Gold Mining Co's Graham Number compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Shandong Gold Mining Co ranks #488 out of 632 companies for Graham Number. This places Shandong Gold Mining Co in the lower half of its industry. The industry median Graham Number is 1.28. Shandong Gold Mining Co's value of $2.30 is 79.7% above this benchmark. 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 Metals & Mining company?
The median Graham Number among Metals & Mining companies is 1.28, based on 632 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. Shandong Gold Mining Co's current Graham Number of $2.30 is 79.7% above the industry median. 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 Shandong Gold Mining Co and its competitors. For the Metals & Mining industry, the median Graham Number is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Gold Mining Co's current Graham Number is $2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Gold Mining Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Gold Mining Co (SDGMF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.01, compared to a current price of $2.69 — trading 10.6% below its estimated fair value. The current Graham Number is $2.30 and 79.7% above the Metals & Mining industry median of 1.28. Shandong Gold Mining Co's overall GF Score™ is 75/100 with 3 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 Shandong Gold Mining Co (SDGMF), the current Graham Number is $2.30 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 Shandong Gold Mining Co (SDGMF) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Gold Mining Co stock appears to be undervalued.
The current stock price of $2.69 is trading 10.6% below its estimated GF Value™ of $3.01.
GuruFocus considers Shandong Gold Mining Co to be Modestly Undervalued.
Key valuation signals for SDGMF:
Graham Number: $2.30
GF Value™: $3.01 vs. price of $2.69 (10.6% below fair value)
Industry Position: 79.7% above the Metals & Mining median (#488 of 632)
No single metric tells the full story. See the SDGMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Gold Mining Co Ltd is a China-based company mainly engaged in the exploration, mining, beneficiation, and sales of gold and non-ferrous metals. Additionally, it is involved in the production, processing, and sales of specialized equipment for gold mines and construction and decoration materials. The company's main products include standard gold bullions, investment gold bars, alloy gold, and silver ingots. Its portfolio of gold mines comprises Sanshandao Gold Mine, Jiaojia Gold Mine, Xincheng Gold Mine, Veladero Gold Mine, and Qinghai Dachaidan Mining, among others. The company's reporting segments are: Gold, which derives maximum revenue, Silver metal, Copper metal, Iron ore concentrates, Lead metal, Zinc metal, Purchased gold, Small gold bars, and Others.
75GF Score
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