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Value Line (Value Line) Graham Number : $20.36 (As of Jan. 2024)


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What is Value Line 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 (2024-06-25), the stock price of Value Line is $41.48. Value Line's graham number for the quarter that ended in Jan. 2024 was $20.36. Therefore, Value Line's Price to Graham Number ratio for today is 2.04.

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

VALU' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.58   Med: 2.24   Max: 4.27
Current: 2.04

During the past 13 years, the highest Price to Graham Number ratio of Value Line was 4.27. The lowest was 1.58. And the median was 2.24.

VALU's Price-to-Graham-Number is ranked worse than
76.91% of 537 companies
in the Capital Markets industry
Industry Median: 1.08 vs VALU: 2.04

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


Value Line Graham Number Historical Data

The historical data trend for Value Line'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.

Value Line Graham Number Chart

Value Line Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.19 14.28 17.77 21.06 19.31

Value Line 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 19.33 19.31 19.74 19.78 20.36

Competitive Comparison of Value Line's Graham Number

For the Financial Data & Stock Exchanges subindustry, Value Line'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.


Value Line's Price-to-Graham-Number Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Value Line's Price-to-Graham-Number distribution charts can be found below:

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



Value Line Graham Number Calculation

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

Value Line's Graham Number for the fiscal year that ended in Apr. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*8.855*1.872)
=19.31

Value Line'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*9.456*1.948)
=20.36

* 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.


Value Line  (NAS:VALU) 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.

Value Line's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jan. 2024 )
=41.48/20.36
=2.04

* 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.


Value Line Graham Number Related Terms

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


Value Line (Value Line) Business Description

Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Glenn J. Muenzer director 357 HARVARD COURT, EAST MEADOW NY 11554
Alfred R Fiore director 1 ANGORA ROAD, WESTPORT CT 06880
Howard A Brecher director, officer: Acting Chairman and Acting CEO VALUE LINE 220 E 42ND ST, SUITE 600, NEW YORK NY 10017
Stephen Anastasio officer: Chief Financial Officer 220 E 42ND STREET, NEW YORK NY 10017
William Edward Reed director 12 KNORR STREET, NORWALK CT 06854
Mary Bernstein director 220 E 42ND STREET, NEW YORK NY 10017
Stephen P Davis director 57 EAST 95TH STREET, NEW YORK NY 10128
Thomas Sarkany director, officer: Secretary 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK NY 10017
Robert M. Perkins, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Ruth O. Legon, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Janet Eakman director 220 E 42ND STREET, NEW YORK NY 10017
Mitchell Eric Appel officer: CFO VALUE LINE INC, 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Edward J Shanahan director 220 EAST 42 STREET, NEW YORK NY 10017
Marianne B Asher director

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