GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Rua Gold Inc (XCNQ:RUA) » Definitions » Graham Number

Rua Gold (XCNQ:RUA) Graham Number : C$N/A (As of Mar. 2024)


View and export this data going back to 2024. Start your Free Trial

What is Rua Gold 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 (2024-06-04), the stock price of Rua Gold is C$0.225. Rua Gold's graham number for the quarter that ended in Mar. 2024 was C$N/A. Therefore, Rua Gold's Price to Graham Number ratio for today is N/A.

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

XCNQ:RUA's Price-to-Graham-Number is not ranked *
in the Metals & Mining industry.
Industry Median: 1.18
* 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.


Rua Gold Graham Number Historical Data

The historical data trend for Rua Gold'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.

Rua Gold Graham Number Chart

Rua Gold Annual Data
Trend
Graham Number

Rua Gold Quarterly Data
Dec22 Dec23 Mar24
Graham Number - - -

Competitive Comparison of Rua Gold's Graham Number

For the Other Industrial Metals & Mining subindustry, Rua Gold'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.


Rua Gold's Price-to-Graham-Number Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Rua Gold's Price-to-Graham-Number distribution charts can be found below:

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



Rua Gold Graham Number Calculation

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

Rua Gold's Graham Number for the fiscal year that ended in . 20 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5**)
=N/A

Rua Gold's Graham Number for the quarter that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.027*-0.011)
=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.


Rua Gold  (XCNQ:RUA) 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.

Rua Gold's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2024 )
=0.225/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.


Rua Gold Graham Number Related Terms

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


Rua Gold (XCNQ:RUA) Business Description

Comparable Companies
Traded in Other Exchanges
Address
1055 West Georgia Street, Suite 1500, Vancouver, BC, CAN, V6E 4N7
Website
Rua Gold Inc is a resource exploration company focused on the acquisition, evaluation and exploration of mineral resource properties. Its has only material mineral property is the Reefton Project.
Executives
Zeenat Kaiser Lokhandwala Senior Officer

Rua Gold (XCNQ:RUA) Headlines

No Headlines