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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.
As of today (2026-09-21), the stock price of Lutian Machinery Co is ¥17.51. Lutian Machinery Co's graham number for the quarter that ended in Jun. 2026 was ¥16.01. Therefore, Lutian Machinery Co's Price to Graham Number ratio for today is 1.09.
The historical rank and industry rank for Lutian Machinery Co's Graham Number or its related term are showing as below:
SHSE:605259'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.96 Med: 1.11 Max: 1.43
Current: 1.07
During the past 8 years, the highest Price to Graham Number ratio of Lutian Machinery Co was 1.43. The lowest was 0.96. And the median was 1.11.
SHSE:605259's Price-to-Graham-Number is ranked better than 72.2% of 2223
companies
in the Industrial Products industry
Industry Median: 1.76
vs SHSE:605259: 1.07
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Lutian Machinery Co (SHSE:605259) 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.
Lutian Machinery Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
17.51
/
16.01
=
1.09
* 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.
Lutian Machinery Co Graham Number Related Terms
Lutian Machinery Co Graham Number Historical Data
* Premium members only.
The historical data trend for Lutian Machinery Co's Graham Number can be seen below:
* 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.
SHSE:605259 vs GEV, ETN, PH: Graham Number Comparison
For the Specialty Industrial Machinery subindustry, Lutian 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.
Lutian Machinery Co Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lutian Machinery Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Lutian Machinery 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.
Lutian Machinery Co (SHSE:605259) has a Graham Number of ¥16.01 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Lutian Machinery Co and its competitors. According to the industry distribution chart, Lutian Machinery Co ranks #618 out of 2223 companies in the Industrial Products industry, placing it in the top 27.8%.
Is Lutian Machinery Co's Graham Number too high?
Lutian Machinery Co's current Graham Number is ¥16.01. Based on the distribution chart, Lutian Machinery Co ranks #618 out of 2223 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Lutian Machinery Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lutian Machinery Co's Graham Number compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Lutian Machinery Co ranks #618 out of 2223 companies for Graham Number. This puts Lutian Machinery Co in the upper half of its industry. The industry median Graham Number is 1.76. 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 Industrial Products company?
The median Graham Number among Industrial Products companies is 1.76, based on 2,223 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 Lutian Machinery Co and its competitors. For the Industrial Products industry, the median Graham Number is 1.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lutian Machinery Co's current Graham Number is ¥16.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lutian Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Lutian Machinery Co (SHSE:605259) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥22.45, compared to a current price of ¥17.51 — trading 22% below its estimated fair value. The current Graham Number is ¥16.01. Lutian Machinery Co's overall GF Score™ is 79/100 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 Lutian Machinery Co (SHSE:605259), the current Graham Number is ¥16.01 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 Lutian Machinery Co (SHSE:605259) Overvalued in 2026?
Based on GuruFocus' analysis, Lutian Machinery Co stock appears to be undervalued.
The current stock price of ¥17.51 is trading 22% below its estimated GF Value™ of ¥22.45.
GuruFocus considers Lutian Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:605259:
Graham Number: ¥16.01
GF Value™: ¥22.45 vs. price of ¥17.51 (22% below fair value)
No single metric tells the full story. See the SHSE:605259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lutian Machinery Co Ltd research and development, production and sales of general power machinery products mainly including generator sets, water pump units and engines and high-pressure cleaner products.
79GF Score
Get the complete analysis for SHSE:605259
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