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Nippon Signal CoTSE:6741 -2.51%88 Graham Number is 円2,584.57 as of Jun. 2026, which is 100% below its 10-year median of 0.68. GuruFocus rates TSE:6741 with a GF Score™ of 88/100 and a GF Value™ of 円1,341.62 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,219 Industrial Products companies, Nippon Signal Co ranks better than 87.43% 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 (2026-08-19), the stock price of Nippon Signal Co is 円1784.00. Nippon Signal Co's graham number for the quarter that ended in Jun. 2026 was 円2,584.57. Therefore, Nippon Signal Co's Price to Graham Number ratio for today is 0.69.
The historical rank and industry rank for Nippon Signal Co's Graham Number or its related term are showing as below:
TSE:6741'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.42 Med: 0.68 Max: 1.27
Current: 0.69
During the past 13 years, the highest Price to Graham Number ratio of Nippon Signal Co was 1.27. The lowest was 0.42. And the median was 0.68.
TSE:6741's Price-to-Graham-Number is ranked better than 87.43% of 2219
companies
in the Industrial Products industry
Industry Median: 1.76
vs TSE:6741: 0.69
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Nippon Signal Co (TSE:6741) 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.
Nippon Signal Co's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
1784.00
/
2,584.57
=
0.69
* 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.
Nippon Signal Co Graham Number Related Terms
Nippon Signal Co Graham Number Historical Data
* Premium members only.
The historical data trend for Nippon Signal 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.
For the Electrical Equipment & Parts subindustry, Nippon Signal 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.
Nippon Signal Co Price-to-Graham-Number vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Nippon Signal 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.
Nippon Signal Co (TSE:6741) has a Graham Number of 円2,584.57 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Nippon Signal Co and its competitors. This is 379984% above median its historical median of 0.68. Over the past decade, Nippon Signal Co's Graham Number has ranged from 0.42 to 1.27. According to the industry distribution chart, Nippon Signal Co ranks #279 out of 2219 companies in the Industrial Products industry, placing it in the top 12.6%.
Is Nippon Signal Co's Graham Number too high?
Nippon Signal Co's current Graham Number of 円2,584.57 is 379984% above median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 1.27. Based on the distribution chart, Nippon Signal Co ranks #279 out of 2219 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Signal Co has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's Graham Number compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #279 out of 2219 companies for Graham Number. This places Nippon Signal Co in the top 13% of its industry — outperforming the majority of peers. The industry median Graham Number is 1.76. Historically, Nippon Signal Co's own Graham Number has ranged from 0.42 to 1.27 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 Industrial Products company?
The median Graham Number among Industrial Products companies is 1.76, based on 2,219 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 Nippon Signal Co and its competitors. For the Industrial Products industry, the median Graham Number is 1.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current Graham Number is 円2,584.57, which is 379984% above median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (TSE:6741) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,341.62, compared to a current price of 円1,784.00 — trading 33% above its estimated fair value. The current Graham Number is 円2,584.57, which is 379984% above median its 10-year median of 0.68. Nippon Signal Co's overall GF Score™ is 88/100 with 4 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 Nippon Signal Co (TSE:6741), the current Graham Number is 円2,584.57 as of Jun. 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 Nippon Signal Co (TSE:6741) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of 円1,784.00 is trading 33% above its estimated GF Value™ of 円1,341.62.
GuruFocus considers Nippon Signal Co to be Significantly Overvalued.
Key valuation signals for TSE:6741:
Graham Number: 円2,584.57 (379984% above median its 10-year median of 0.68)
GF Value™: 円1,341.62 vs. price of 円1,784.00 (33% above fair value)
No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
88GF Score
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