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DD Group Co (TSE:3073) Graham Number : 円1,274.76 (As of Feb. 2024)


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What is DD Group Co 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 (2024-06-22), the stock price of DD Group Co is 円1195.00. DD Group Co's graham number for the quarter that ended in Feb. 2024 was 円1,274.76. Therefore, DD Group Co's Price to Graham Number ratio for today is 0.94.

The historical rank and industry rank for DD Group Co's Graham Number or its related term are showing as below:

TSE:3073' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.93   Med: 1.86   Max: 3.43
Current: 0.94

During the past 13 years, the highest Price to Graham Number ratio of DD Group Co was 3.43. The lowest was 0.93. And the median was 1.86.

TSE:3073's Price-to-Graham-Number is ranked better than
80.9% of 199 companies
in the Restaurants industry
Industry Median: 1.92 vs TSE:3073: 0.94

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


DD Group Co Graham Number Historical Data

The historical data trend for DD Group 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.

* Premium members only.

DD Group Co Graham Number Chart

DD Group Co Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 652.27 - - 292.72 1,269.45

DD Group Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 314.85 613.10 781.51 910.79 1,274.76

Competitive Comparison of DD Group Co's Graham Number

For the Restaurants subindustry, DD Group 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.


DD Group Co's Price-to-Graham-Number Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, DD Group Co's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where DD Group Co's Price-to-Graham-Number falls into.



DD Group Co Graham Number Calculation

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

DD Group Co's Graham Number for the fiscal year that ended in Feb. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*356.111*201.125)
=1,269.45

DD Group Co's Graham Number for the quarter that ended in Feb. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*356.111*202.811)
=1,274.76

* 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.


DD Group Co  (TSE:3073) 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.

DD Group Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Feb. 2024 )
=1195.00/1,274.76
=0.94

* 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.


DD Group Co Graham Number Related Terms

Thank you for viewing the detailed overview of DD Group Co's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


DD Group Co (TSE:3073) Business Description

Traded in Other Exchanges
N/A
Address
4-1-23 Shiba, Minato-ku, Tokyo Mita NN Building 18F, Tokyo, JPN
DD Group Co Ltd is engaged in offering the management and planning of the food and drink business which includes pubs and restaurants. The restaurants include vampire cafe, glass dance, shimanto river, pork of Versailles, tori fuka, and hungry black shop.

DD Group Co (TSE:3073) Headlines

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