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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 (2026-08-25), the stock price of Cluster Technology Co is 円324.00. Cluster Technology Co's graham number for the quarter that ended in Mar. 2026 was 円391.82. Therefore, Cluster Technology Co's Price to Graham Number ratio for today is 0.91.
The historical rank and industry rank for Cluster Technology Co's Graham Number or its related term are showing as below:
TSE:4240'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.74 Med: 1.44 Max: 4.64
Current: 0.95
During the past 13 years, the highest Price to Graham Number ratio of Cluster Technology Co was 4.64. The lowest was 0.74. And the median was 1.44.
TSE:4240's Price-to-Graham-Number is ranked better than 76.15% of 1648
companies
in the Hardware industry
Industry Median: 1.78
vs TSE:4240: 0.95
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Cluster Technology Co (TSE:4240) 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.
Cluster Technology Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
324.00
/
354.34
=
0.91
* 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.
Cluster Technology Co Graham Number Related Terms
Cluster Technology Co Graham Number Historical Data
* Premium members only.
The historical data trend for Cluster Technology 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.
TSE:4240 vs APH, GLW, TEL: Graham Number Comparison
For the Electronic Components subindustry, Cluster Technology 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.
Cluster Technology Co Price-to-Graham-Number vs Hardware Industry
For the Hardware industry and Technology sector, Cluster Technology Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Cluster Technology Co'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.
Cluster Technology Co (TSE:4240) has a Graham Number of 円391.82 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Cluster Technology Co and its competitors. According to the industry distribution chart, Cluster Technology Co ranks #393 out of 1648 companies in the Hardware industry, placing it in the top 23.8%.
Is Cluster Technology Co's Graham Number too high?
Cluster Technology Co's current Graham Number is 円391.82. Based on the distribution chart, Cluster Technology Co ranks #393 out of 1648 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cluster Technology Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cluster Technology Co's Graham Number compare to APH and GLW?
According to the Hardware industry distribution chart, Cluster Technology Co ranks #393 out of 1648 companies for Graham Number. This places Cluster Technology Co in the top 24% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.78. 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 Hardware company?
The median Graham Number among Hardware companies is 1.78, based on 1,648 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 Cluster Technology Co and its competitors. For the Hardware industry, the median Graham Number is 1.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cluster Technology Co's current Graham Number is 円391.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cluster Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Cluster Technology Co (TSE:4240) is currently considered Modestly Undervalued. The stock's GF Value™ is 円444.62, compared to a current price of 円324.00 — trading 27.1% below its estimated fair value. The current Graham Number is 円391.82. Cluster Technology Co's overall GF Score™ is 69/100. 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 Cluster Technology Co (TSE:4240), the current Graham Number is 円391.82 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 Cluster Technology Co (TSE:4240) Overvalued in 2026?
Based on GuruFocus' analysis, Cluster Technology Co stock appears to be undervalued.
The current stock price of 円324.00 is trading 27.1% below its estimated GF Value™ of 円444.62.
GuruFocus considers Cluster Technology Co to be Modestly Undervalued.
Key valuation signals for TSE:4240:
Graham Number: 円391.82
GF Value™: 円444.62 vs. price of 円324.00 (27.1% below fair value)
No single metric tells the full story. See the TSE:4240 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cluster Technology Co Ltd develops and manufactures composite materials and Nano-micromachining including metal mold making. It also manufactures and sale molding dies, plastic molding materials. Its nanotechnology/microtechnology business products include sensor holders for autofocus of digital single lens reflex cameras, peripheral parts of image sensors, base parts of inkjet heads.
69GF Score
Get the complete analysis for TSE:4240
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