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Silicon Studio (TSE:3907) Graham Number : 円320.01 (As of May. 2024)


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What is Silicon Studio 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 (2024-12-11), the stock price of Silicon Studio is 円761.00. Silicon Studio's graham number for the quarter that ended in May. 2024 was 円320.01. Therefore, Silicon Studio's Price to Graham Number ratio for today is 2.38.

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

TSE:3907' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.89   Med: 2.26   Max: 11.54
Current: 2.38

During the past 11 years, the highest Price to Graham Number ratio of Silicon Studio was 11.54. The lowest was 0.89. And the median was 2.26.

TSE:3907's Price-to-Graham-Number is ranked worse than
67.83% of 258 companies
in the Interactive Media industry
Industry Median: 1.655 vs TSE:3907: 2.38

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


Silicon Studio Graham Number Historical Data

The historical data trend for Silicon Studio'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.

Silicon Studio Graham Number Chart

Silicon Studio Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 749.96 379.23 - 1,192.30 1,014.19

Silicon Studio Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
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 1,425.17 1,096.04 1,004.29 780.35 320.01

Competitive Comparison of Silicon Studio's Graham Number

For the Electronic Gaming & Multimedia subindustry, Silicon Studio'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.


Silicon Studio's Price-to-Graham-Number Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Silicon Studio's Price-to-Graham-Number distribution charts can be found below:

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



Silicon Studio Graham Number Calculation

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

Silicon Studio's Graham Number for the fiscal year that ended in Nov. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*610.415*74.891)
=1,014.19

Silicon Studio's Graham Number for the quarter that ended in May. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*600.93*7.574)
=320.01

* 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.


Silicon Studio  (TSE:3907) 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.

Silicon Studio's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: May. 2024 )
=761.00/320.01
=2.38

* 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.


Silicon Studio Graham Number Related Terms

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


Silicon Studio Business Description

Traded in Other Exchanges
N/A
Address
1-21-3 Ebisu Shibuya-ku, Tokyo, JPN, 150-0013
Silicon Studio Corp is engaged in the digital contents development business. It offers optical effects middlewares, CG engine and online solution services. The Company's segments are technology, contents and manpower.

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