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Sumitomo Electric IndustriesSMTOY -4.81%76 Graham Number is $4.44 as of Mar. 2026, which is 594% above its 10-year median of 0.64. GuruFocus rates SMTOY with a GF Score™ of 76/100 and a GF Value™ of $2.16 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 984 Vehicles & Parts companies, Sumitomo Electric Industries ranks worse than 66.57% on this metric.
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 Sumitomo Electric Industries's Graham Number or its related term are showing as below:
SMTOY'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.56 Med: 0.64 Max: 1.73
Current: 1.65
During the past 13 years, the highest Price to Graham Number ratio of Sumitomo Electric Industries was 1.73. The lowest was 0.56. And the median was 0.64.
SMTOY's Price-to-Graham-Number is ranked worse than 66.57% of 984
companies
in the Vehicles & Parts industry
Industry Median: 1.14
vs SMTOY: 1.65
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Sumitomo Electric Industries (OTCPK:SMTOY) 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.
Sumitomo Electric Industries's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
6.73
/
4.44
=
1.51
* 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.
Sumitomo Electric Industries Graham Number Related Terms
Sumitomo Electric Industries 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 Auto Parts subindustry, Sumitomo Electric Industries'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.
Sumitomo Electric Industries Price-to-Graham-Number vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric Industries'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.
Sumitomo Electric Industries (SMTOY) has a Graham Number of $4.44 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Sumitomo Electric Industries and its competitors. This is 594% above median its historical median of 0.64. Over the past decade, Sumitomo Electric Industries' Graham Number has ranged from 0.56 to 1.73. According to the industry distribution chart, Sumitomo Electric Industries ranks #655 out of 984 companies in the Vehicles & Parts industry, placing it in the top 66.6%.
Is Sumitomo Electric Industries' Graham Number too high?
Sumitomo Electric Industries' current Graham Number of $4.44 is 594% above median its 10-year median of 0.64. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 1.73. The Vehicles & Parts industry median Graham Number is 1.14. Sumitomo Electric Industries' value of $4.44 is 289.5% above this industry median. Based on the distribution chart, Sumitomo Electric Industries ranks #655 out of 984 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Sumitomo Electric Industries has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' Graham Number compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Electric Industries ranks #655 out of 984 companies for Graham Number. This places Sumitomo Electric Industries in the lower half of its industry. The industry median Graham Number is 1.14. Sumitomo Electric Industries' value of $4.44 is 289.5% above this benchmark. Historically, Sumitomo Electric Industries' own Graham Number has ranged from 0.56 to 1.73 over the past decade. While the company's 10-year median is 0.64 vs. the industry median of 1.14, Sumitomo Electric Industries 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 Vehicles & Parts company?
The median Graham Number among Vehicles & Parts companies is 1.14, based on 984 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. Sumitomo Electric Industries's current Graham Number of $4.44 is 289.5% 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 Sumitomo Electric Industries and its competitors. For the Vehicles & Parts industry, the median Graham Number is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Electric Industries's current Graham Number is $4.44, which is 594% above median its own 10-year median of 0.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Electric Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Electric Industries (SMTOY) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.16, compared to a current price of $6.73 — trading 211.6% above its estimated fair value. The current Graham Number is $4.44, which is 594% above median its 10-year median of 0.64 and 289.5% above the Vehicles & Parts industry median of 1.14. Sumitomo Electric Industries' overall GF Score™ is 76/100 with 1 warning sign 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 Sumitomo Electric Industries (SMTOY), the current Graham Number is $4.44 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 Sumitomo Electric Industries (SMTOY) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $6.73 is trading 211.6% above its estimated GF Value™ of $2.16.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOY:
Graham Number: $4.44 (594% above median its 10-year median of 0.64)
GF Value™: $2.16 vs. price of $6.73 (211.6% above fair value)
Industry Position: 289.5% above the Vehicles & Parts median (#655 of 984)
No single metric tells the full story. See the SMTOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company operates through five segments. The Automotive related business covers wire harnesses, anti-vibration rubber, hoses, electrical parts, and traffic control systems. The Electronics related business provides electronic wires, flexible printed circuits, fluoropolymer products, and metal components. The Environment and Energy related business handles power transmission equipment, substation systems, vacuum and beam equipment, and conductive products. The Industrial Materials business includes steel wire, tools, optical components, and sintered parts. The Information and Communication business offers fiber optic cables, communication equipment, and optical devices.
76GF Score
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