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ExlService Holdings (STU:LHV) Graham Number : €8.47 (As of Sep. 2024)


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What is ExlService Holdings Graham Number?

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 (2024-12-15), the stock price of ExlService Holdings is €43.66. ExlService Holdings's graham number for the quarter that ended in Sep. 2024 was €8.47. Therefore, ExlService Holdings's Price to Graham Number ratio for today is 5.15.

The historical rank and industry rank for ExlService Holdings's Graham Number or its related term are showing as below:

STU:LHV' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.05   Med: 3.52   Max: 6.46
Current: 4.93

During the past 13 years, the highest Price to Graham Number ratio of ExlService Holdings was 6.46. The lowest was 2.05. And the median was 3.52.

STU:LHV's Price-to-Graham-Number is ranked worse than
77.07% of 1426 companies
in the Software industry
Industry Median: 2.42 vs STU:LHV: 4.93

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


ExlService Holdings Graham Number Historical Data

The historical data trend for ExlService Holdings'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.

* Premium members only.

ExlService Holdings Graham Number Chart

ExlService Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.04 3.58 3.72 5.39 7.32

ExlService Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.96 7.94 7.46 8.15 8.47

Competitive Comparison of ExlService Holdings's Graham Number

For the Information Technology Services subindustry, ExlService Holdings'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.


ExlService Holdings's Price-to-Graham-Number Distribution in the Software Industry

For the Software industry and Technology sector, ExlService Holdings's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where ExlService Holdings's Price-to-Graham-Number falls into.



ExlService Holdings Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

ExlService Holdings's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*2.406*0.989)
=7.32

ExlService Holdings's Graham Number for the quarter that ended in Sep. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.4*1.329)
=8.47

* 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.


ExlService Holdings  (STU:LHV) 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.

ExlService Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=43.66/8.47
=5.15

* 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.


ExlService Holdings Graham Number Related Terms

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ExlService Holdings Business Description

Traded in Other Exchanges
Address
320 Park Avenue, 29th Floor, New York, NY, USA, 10022
ExlService Holdings Inc. is a business process management company that provides digital operations and analytical services to clients driving enterprise-scale business transformation initiatives that leverage company's deep expertise in analytics, AI, ML and cloud. The company offers business process outsourcing and automation services, and data-driven insights to customers across multiple industries. The company operates through four segments based on the products and services offered and markets served: Insurance, Healthcare, Emerging, Analytics. The vast majority of the company's revenue is earned in the United States, and more than half of its revenue comes from Analytics segment.

ExlService Holdings Headlines

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