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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.
During the past 13 years, the highest Price to Graham Number ratio of Shandong Molong Petroleum Machinery Co was 62.14. The lowest was 0.39. And the median was 0.48.
SHANF's Price-to-Graham-Number is not ranked *
in the Oil & Gas industry.
Industry Median: 1.09 * 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.
Shandong Molong Petroleum Machinery Co (OTCPK:SHANF) 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 Molong Petroleum Machinery Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
0.9375
/
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.
Shandong Molong Petroleum Machinery Co Graham Number Related Terms
Shandong Molong Petroleum Machinery 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.
Shandong Molong Petroleum Machinery Co Graham Number Chart
Shandong Molong Petroleum Machinery Co Annual Data
For the Oil & Gas Equipment & Services subindustry, Shandong Molong Petroleum Machinery 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 Molong Petroleum Machinery Co Price-to-Graham-Number vs Oil & Gas Industry
* 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 Molong Petroleum Machinery Co (SHANF) has a Graham Number of $0.02 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Shandong Molong Petroleum Machinery Co and its competitors. According to the industry distribution chart, Shandong Molong Petroleum Machinery Co ranks #624 out of 628 companies in the Oil & Gas industry, placing it in the top 99.4%.
Is Shandong Molong Petroleum Machinery Co's Graham Number too high?
Shandong Molong Petroleum Machinery Co's current Graham Number is $0.02. The Oil & Gas industry median Graham Number is 1.09. Shandong Molong Petroleum Machinery Co's value of $0.02 is 98.2% below this industry median. Based on the distribution chart, Shandong Molong Petroleum Machinery Co ranks #624 out of 628 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Shandong Molong Petroleum Machinery Co has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Shandong Molong Petroleum Machinery Co's Graham Number compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Shandong Molong Petroleum Machinery Co ranks #624 out of 628 companies for Graham Number. This places Shandong Molong Petroleum Machinery Co in the lower half of its industry. The industry median Graham Number is 1.09. Shandong Molong Petroleum Machinery Co's value of $0.02 is 98.2% below 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 an Oil & Gas company?
The median Graham Number among Oil & Gas companies is 1.09, based on 628 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 Molong Petroleum Machinery Co's current Graham Number of $0.02 is 98.2% below 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 Molong Petroleum Machinery Co and its competitors. For the Oil & Gas industry, the median Graham Number is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Molong Petroleum Machinery Co's current Graham Number is $0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Molong Petroleum Machinery Co stock overvalued right now?
Shandong Molong Petroleum Machinery Co (SHANF) has a current Graham Number of $0.02. The stock's GF Value™ is $0.48, compared to a current price of $0.94 — trading 95.3% above its estimated fair value. The current Graham Number is $0.02 and 98.2% below the Oil & Gas industry median of 1.09. Shandong Molong Petroleum Machinery Co's overall GF Score™ is 44/100 with 6 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 Molong Petroleum Machinery Co (SHANF), the current Graham Number is $0.02 as of Mar. 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 Molong Petroleum Machinery Co (SHANF) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Molong Petroleum Machinery Co stock appears to be overvalued.
The current stock price of $0.94 is trading 95.3% above its estimated GF Value™ of $0.48.
Key valuation signals for SHANF:
Graham Number: $0.02
GF Value™: $0.48 vs. price of $0.94 (95.3% above fair value)
Industry Position: 98.2% below the Oil & Gas median (#624 of 628)
No single metric tells the full story. See the SHANF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Molong Petroleum Machinery Co Ltd is engaged in the design, research and development, processing and manufacturing, sale service, and export trade of products for the energy equipment industry. Its main products include petroleum-drilling machinery equipment, petroleum and natural gas pipeline equipment, and oil and gas exploitation equipment. These products are used in petroleum, natural gas, shale gas, coalbed methane, hydrogen energy, oil refining, coal mining machinery, boiler manufacturing, engineering machinery manufacturing, and oilfield services.
44GF Score
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