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NorAm Drilling ASSTU:TM9 +1.16%79 Graham Number is €2.42 as of Mar. 2026, which is 100% below its 10-year median of 1.28. GuruFocus rates STU:TM9 with a GF Score™ of 79/100 and a GF Value™ of €3.00 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 616 Oil & Gas companies, NorAm Drilling AS ranks worse than 67.69% 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.
As of today (2026-08-08), the stock price of NorAm Drilling AS is €3.93. NorAm Drilling AS's graham number for the quarter that ended in Mar. 2026 was €2.42. Therefore, NorAm Drilling AS's Price to Graham Number ratio for today is 1.62.
The historical rank and industry rank for NorAm Drilling AS's Graham Number or its related term are showing as below:
STU:TM9'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.83 Med: 1.28 Max: 35.85
Current: 1.56
During the past 7 years, the highest Price to Graham Number ratio of NorAm Drilling AS was 35.85. The lowest was 0.83. And the median was 1.28.
STU:TM9's Price-to-Graham-Number is ranked worse than 67.69% of 616
companies
in the Oil & Gas industry
Industry Median: 1.08
vs STU:TM9: 1.56
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
NorAm Drilling AS (STU:TM9) 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.
NorAm Drilling AS's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
3.93
/
2.42
=
1.62
* 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.
NorAm Drilling AS Graham Number Related Terms
NorAm Drilling AS Graham Number Historical Data
* Premium members only.
The historical data trend for NorAm Drilling AS'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.
STU:TM9 vs SLB, BKR, FTI: Graham Number Comparison
For the Oil & Gas Equipment & Services subindustry, NorAm Drilling AS'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.
NorAm Drilling AS Price-to-Graham-Number vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, NorAm Drilling AS's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where NorAm Drilling AS'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.
NorAm Drilling AS (STU:TM9) has a Graham Number of €2.42 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on NorAm Drilling AS and its competitors. This is 89% above median its historical median of 1.28. Over the past decade, NorAm Drilling AS's Graham Number has ranged from 0.83 to 35.85. According to the industry distribution chart, NorAm Drilling AS ranks #417 out of 616 companies in the Oil & Gas industry, placing it in the top 67.7%.
Is NorAm Drilling AS's Graham Number too high?
NorAm Drilling AS's current Graham Number of €2.42 is 89% above median its 10-year median of 1.28. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 35.85. Based on the distribution chart, NorAm Drilling AS ranks #417 out of 616 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, NorAm Drilling AS has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NorAm Drilling AS's Graham Number compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, NorAm Drilling AS ranks #417 out of 616 companies for Graham Number. This places NorAm Drilling AS in the lower half of its industry. The industry median Graham Number is 1.08. Historically, NorAm Drilling AS's own Graham Number has ranged from 0.83 to 35.85 over the past decade. 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 Oil & Gas company?
The median Graham Number among Oil & Gas companies is 1.08, based on 616 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 NorAm Drilling AS and its competitors. For the Oil & Gas industry, the median Graham Number is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NorAm Drilling AS's current Graham Number is €2.42, which is 89% above median its own 10-year median of 1.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NorAm Drilling AS stock overvalued right now?
Based on GuruFocus' analysis, NorAm Drilling AS (STU:TM9) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.00, compared to a current price of €3.93 — trading 31% above its estimated fair value. The current Graham Number is €2.42, which is 89% above median its 10-year median of 1.28. NorAm Drilling AS's overall GF Score™ is 79/100 with 3 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 NorAm Drilling AS (STU:TM9), the current Graham Number is €2.42 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 NorAm Drilling AS (STU:TM9) Overvalued in 2026?
Based on GuruFocus' analysis, NorAm Drilling AS stock appears to be overvalued.
The current stock price of €3.93 is trading 31% above its estimated GF Value™ of €3.00.
GuruFocus considers NorAm Drilling AS to be Significantly Overvalued.
Key valuation signals for STU:TM9:
Graham Number: €2.42 (89% above median its 10-year median of 1.28)
GF Value™: €3.00 vs. price of €3.93 (31% above fair value)
No single metric tells the full story. See the STU:TM9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NorAm Drilling AS owns and operates a quality rig portfolio of super spec developed high-end AC driven rigs tailored for the drilling of horizontal wells in the USA land drilling market. These rigs are designed to combine the cost efficiency of a compact rig with the versatility of different rig classes, enabling the rigs to cover a broad range of wells for both liquids and gas. The group's operating segments are NorAm Drilling Company, which derives maximum revenue, and NorAm Drilling AS.
79GF Score
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