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OM2 Network Co (TSE:7614) Graham Number : 円3,199.96 (As of Jan. 2024)


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What is OM2 Network 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 (2024-05-16), the stock price of OM2 Network Co is 円1582.00. OM2 Network Co's graham number for the quarter that ended in Jan. 2024 was 円3,199.96. Therefore, OM2 Network Co's Price to Graham Number ratio for today is 0.49.

The historical rank and industry rank for OM2 Network Co's Graham Number or its related term are showing as below:

TSE:7614' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.4   Med: 0.47   Max: 0.59
Current: 0.49

During the past 13 years, the highest Price to Graham Number ratio of OM2 Network Co was 0.59. The lowest was 0.40. And the median was 0.47.

TSE:7614's Price-to-Graham-Number is ranked better than
90.6% of 234 companies
in the Retail - Defensive industry
Industry Median: 1.235 vs TSE:7614: 0.49

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


OM2 Network Co Graham Number Historical Data

The historical data trend for OM2 Network 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.

OM2 Network Co Graham Number Chart

OM2 Network Co Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,272.30 2,515.04 2,383.15 2,653.15 3,199.44

OM2 Network Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 2,645.41 2,797.78 2,971.75 3,101.81 3,199.96

Competitive Comparison of OM2 Network Co's Graham Number

For the Food Distribution subindustry, OM2 Network 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.


OM2 Network Co's Price-to-Graham-Number Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, OM2 Network Co's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where OM2 Network Co's Price-to-Graham-Number falls into.



OM2 Network Co Graham Number Calculation

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

OM2 Network Co's Graham Number for the fiscal year that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*2393.872*190.049)
=3,199.44

OM2 Network Co's Graham Number for the quarter that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2393.872*190.11)
=3,199.96

* 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.


OM2 Network Co  (TSE:7614) 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.

OM2 Network Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jan. 2024 )
=1582.00/3,199.96
=0.49

* 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.


OM2 Network Co Graham Number Related Terms

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OM2 Network Co (TSE:7614) Business Description

Traded in Other Exchanges
N/A
Address
2-4-7 Shiba Daimon, Tokyo, JPN, 105-0012
OM2 Network Co Ltd is a food distribution company. It is engaged in the retail trade of meat, beef, and other food items.

OM2 Network Co (TSE:7614) Headlines

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