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 (2024-06-18), the stock price of Trinidad Drilling is C$1.68. Trinidad Drilling's graham number for the quarter that ended in Sep. 2018 was C$N/A. Therefore, Trinidad Drilling's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Trinidad Drilling's Graham Number or its related term are showing as below:
TSX:TDG's Price-to-Graham-Number is not ranked *
in the Oil & Gas industry.
Industry Median: 0.84 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Trinidad Drilling Graham Number Historical Data
The historical data trend for Trinidad Drilling'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.
Competitive Comparison of Trinidad Drilling's Graham Number
For the Oil & Gas Drilling subindustry, Trinidad Drilling'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.
Trinidad Drilling's Price-to-Graham-Number Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Trinidad Drilling's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Trinidad Drilling's Price-to-Graham-Number falls into.
Trinidad Drilling Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Trinidad Drilling's Graham Number for the fiscal year that ended in Dec. 2017 is calculated as
* 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.
Trinidad Drilling (TSX:TDG) 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.
Trinidad Drilling's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Sep. 2018 )
=
1.68
/
N/A
=
N/A
* 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.
Trinidad Drilling Graham Number Related Terms
Thank you for viewing the detailed overview of Trinidad Drilling's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Trinidad Drilling Ltd is a Canadian company which is engaged in providing drilling services to the oil and natural gas industry. The company's operating segments are Canadian operations which include land drilling services; US and international operations which include land and barge drilling services located in both the US and international markets, excluding all joint venture operations; Joint venture operations which include all international joint venture operations; and Manufacturing operations include manufacturing work performed in each of the Canadian and US manufacturing divisions. The majority of the company's revenue comes from oilfield services.
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