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.
The historical rank and industry rank for Shanghai Material Trading Co's Graham Number or its related term are showing as below:
SHSE:600822'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.78 Med: 5.21 Max: 27.91
Current: 4.89
During the past 13 years, the highest Price to Graham Number ratio of Shanghai Material Trading Co was 27.91. The lowest was 1.78. And the median was 5.21.
SHSE:600822's Price-to-Graham-Number is ranked worse than 95.53% of 358
companies
in the Conglomerates industry
Industry Median: 0.9
vs SHSE:600822: 4.89
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Shanghai Material Trading Co (SHSE:600822) 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 Material Trading Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
9.38
/
1.93
=
4.85
* 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 Material Trading Co Graham Number Related Terms
Shanghai Material Trading 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 Conglomerates subindustry, Shanghai Material Trading 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 Material Trading Co Price-to-Graham-Number vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Shanghai Material Trading Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Shanghai Material Trading 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 Material Trading Co (SHSE:600822) has a Graham Number of ¥1.68 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Shanghai Material Trading Co and its competitors. According to the industry distribution chart, Shanghai Material Trading Co ranks #342 out of 358 companies in the Conglomerates industry, placing it in the top 95.5%.
Is Shanghai Material Trading Co's Graham Number too high?
Shanghai Material Trading Co's current Graham Number is ¥1.68. Based on the distribution chart, Shanghai Material Trading Co ranks #342 out of 358 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Shanghai Material Trading Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Material Trading Co's Graham Number compare to MMM and HON?
According to the Conglomerates industry distribution chart, Shanghai Material Trading Co ranks #342 out of 358 companies for Graham Number. This places Shanghai Material Trading Co in the lower half of its industry. The industry median Graham Number is 0.90. 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 Conglomerates company?
The median Graham Number among Conglomerates companies is 0.90, based on 358 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 Shanghai Material Trading Co and its competitors. For the Conglomerates industry, the median Graham Number is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Material Trading Co's current Graham Number is ¥1.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Material Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Material Trading Co (SHSE:600822) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥6.31, compared to a current price of ¥9.38 — trading 48.7% above its estimated fair value. The current Graham Number is ¥1.68. Shanghai Material Trading Co's overall GF Score™ is 49/100 with 2 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 Material Trading Co (SHSE:600822), the current Graham Number is ¥1.68 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 Shanghai Material Trading Co (SHSE:600822) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Material Trading Co stock appears to be overvalued.
The current stock price of ¥9.38 is trading 48.7% above its estimated GF Value™ of ¥6.31.
GuruFocus considers Shanghai Material Trading Co to be Significantly Overvalued.
Key valuation signals for SHSE:600822:
Graham Number: ¥1.68
GF Value™: ¥6.31 vs. price of ¥9.38 (48.7% above fair value)
No single metric tells the full story. See the SHSE:600822 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Material Trading Co Ltd is principally engaged in the trading of metal, oil products and automobiles. The company operates its businesses in domestic and overseas markets. Its scopr of business include metal materials, mineral products, light chemical raw materials, building materials, wood, automobiles and accessories, mechanical and electrical equipment, fuel, hardware and electricity, textile Import and export trade business; warehousing, information consulting and technical services.
49GF Score
Get the complete analysis for SHSE:600822
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
SHSE:600822 has been successfully added to your 
