Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
SHPMF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.67 Med: 0.97 Max: 1.79
Current: 0.68
During the past 13 years, the highest Price to Graham Number ratio of Shanghai Pharmaceuticals Holding Co was 1.79. The lowest was 0.67. And the median was 0.97.
SHPMF's Price-to-Graham-Number is ranked better than 68% of 75
companies
in the Medical Distribution industry
Industry Median: 0.83
vs SHPMF: 0.68
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Shanghai Pharmaceuticals Holding Co (OTCPK:SHPMF) 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.
Shanghai Pharmaceuticals Holding Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
1.46
/
3.52
=
0.41
* 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.
Shanghai Pharmaceuticals Holding Co Graham Number Related Terms
Shanghai Pharmaceuticals Holding 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.
Shanghai Pharmaceuticals Holding Co Graham Number Chart
For the Medical Distribution subindustry, Shanghai Pharmaceuticals Holding 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.
Shanghai Pharmaceuticals Holding Co Price-to-Graham-Number vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Shanghai Pharmaceuticals Holding Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Shanghai Pharmaceuticals Holding 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.
Shanghai Pharmaceuticals Holding Co (SHPMF) has a Graham Number of $3.52 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Shanghai Pharmaceuticals Holding Co and its competitors. This is 263% above median its historical median of 0.97. Over the past decade, Shanghai Pharmaceuticals Holding Co's Graham Number has ranged from 0.67 to 1.79. According to the industry distribution chart, Shanghai Pharmaceuticals Holding Co ranks #24 out of 75 companies in the Medical Distribution industry, placing it in the top 32%.
Is Shanghai Pharmaceuticals Holding Co's Graham Number too high?
Shanghai Pharmaceuticals Holding Co's current Graham Number of $3.52 is 263% above median its 10-year median of 0.97. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 1.79. The Medical Distribution industry median Graham Number is 0.83. Shanghai Pharmaceuticals Holding Co's value of $3.52 is 324.1% above this industry median. Based on the distribution chart, Shanghai Pharmaceuticals Holding Co ranks #24 out of 75 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Shanghai Pharmaceuticals Holding Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Pharmaceuticals Holding Co's Graham Number compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Shanghai Pharmaceuticals Holding Co ranks #24 out of 75 companies for Graham Number. This puts Shanghai Pharmaceuticals Holding Co in the upper half of its industry. The industry median Graham Number is 0.83. Shanghai Pharmaceuticals Holding Co's value of $3.52 is 324.1% above this benchmark. Historically, Shanghai Pharmaceuticals Holding Co's own Graham Number has ranged from 0.67 to 1.79 over the past decade. While the company's 10-year median is 0.97 vs. the industry median of 0.83, Shanghai Pharmaceuticals Holding Co has consistently been above the industry average. 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 Medical Distribution company?
The median Graham Number among Medical Distribution companies is 0.83, based on 75 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. Shanghai Pharmaceuticals Holding Co's current Graham Number of $3.52 is 324.1% 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 Shanghai Pharmaceuticals Holding Co and its competitors. For the Medical Distribution industry, the median Graham Number is 0.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Pharmaceuticals Holding Co's current Graham Number is $3.52, which is 263% above median its own 10-year median of 0.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Pharmaceuticals Holding Co stock overvalued right now?
Shanghai Pharmaceuticals Holding Co (SHPMF) has a current Graham Number of $3.52. The stock's GF Value™ is $1.76, compared to a current price of $1.46 — trading 17% below its estimated fair value. The current Graham Number is $3.52, which is 263% above median its 10-year median of 0.97 and 324.1% above the Medical Distribution industry median of 0.83. Shanghai Pharmaceuticals Holding Co's overall GF Score™ is 73/100 with 4 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 Shanghai Pharmaceuticals Holding Co (SHPMF), the current Graham Number is $3.52 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 Shanghai Pharmaceuticals Holding Co (SHPMF) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Pharmaceuticals Holding Co stock appears to be undervalued.
The current stock price of $1.46 is trading 17% below its estimated GF Value™ of $1.76.
Key valuation signals for SHPMF:
Graham Number: $3.52 (263% above median its 10-year median of 0.97)
GF Value™: $1.76 vs. price of $1.46 (17% below fair value)
Industry Position: 324.1% above the Medical Distribution median (#24 of 75)
No single metric tells the full story. See the SHPMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Pharmaceuticals Holding Co Business Description
Shanghai Pharmaceuticals Holding Co Ltd is engaged in the pharmaceutical drug development and distribution business. The Group's reportable segments are: Production, Distribution, Retail, and Other. The majority of its revenue comes from the Distribution segment, which is mainly engaged in distribution, warehousing, and other value-added pharmaceutical supply chain solutions and related services for pharmaceutical manufacturers and dispensers. The Retail segment operates a network of retail pharmacy stores, and the Production segment is mainly engaged in research and development, production, and sales of a broad range of pharmaceutical and healthcare products. Geographically, the Group mainly operates in the People's Republic of China (PRC).
73GF Score
Get the complete analysis for SHPMF
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHPMF has been successfully added to your 
