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Videocon d2h (Videocon d2h) Graham Number : $0.89 (As of Sep. 2017)


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What is Videocon d2h 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 (2024-05-06), the stock price of Videocon d2h is $8.49. Videocon d2h's graham number for the quarter that ended in Sep. 2017 was $0.89. Therefore, Videocon d2h's Price to Graham Number ratio for today is 15.83.

The historical rank and industry rank for Videocon d2h's Graham Number or its related term are showing as below:

VDTH's Price-to-Graham-Number is not ranked *
in the Media - Diversified industry.
Industry Median: 1.39
* 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.


Videocon d2h Graham Number Historical Data

The historical data trend for Videocon d2h'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.

Videocon d2h Graham Number Chart

Videocon d2h Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17
Graham Number
- - - - 0.96

Videocon d2h Quarterly Data
Mar13 Mar14 Sep14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
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 - 0.88 - 0.89 -

Competitive Comparison of Videocon d2h's Graham Number

For the Broadcasting subindustry, Videocon d2h'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.


Videocon d2h's Price-to-Graham-Number Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Videocon d2h's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Videocon d2h's Price-to-Graham-Number falls into.



Videocon d2h Graham Number Calculation

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

Videocon d2h's Graham Number for the fiscal year that ended in Mar. 2017 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*1.005*0.041)
=0.96

Videocon d2h's Graham Number for the quarter that ended in Sep. 2017 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.984*0.013)
=0.54

* 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.


Videocon d2h  (NAS:VDTH) 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.

Videocon d2h's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2017 )
=8.49/0.54
=15.83

* 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.


Videocon d2h Graham Number Related Terms

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Videocon d2h (Videocon d2h) Business Description

Traded in Other Exchanges
N/A
Address
Videocon d2h Ltd provides DTH subscription television services to subscribers in India. It operates under the 'Videocon d2h' brand. The company operates in a single business segment Direct to Home services in India. The company carry's out transmission of programming to subscribers through satellite broadcasting, which allows a subscriber to directly receive a broadcast signal from a satellite, through a satellite dish antenna and other equipment installed at the subscriber's premises, which is then decoded by a set-top box.

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