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Seed Co (XZIM:SEED.ZW) Graham Number : ZWL25.24 (As of Sep. 2023)


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What is Seed 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 (2024-06-07), the stock price of Seed Co is ZWL176.9505. Seed Co's graham number for the quarter that ended in Sep. 2023 was ZWL25.24. Therefore, Seed Co's Price to Graham Number ratio for today is 7.01.

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

XZIM:SEED.ZW' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.24   Med: 0.46   Max: 21.4
Current: 7.01

During the past 8 years, the highest Price to Graham Number ratio of Seed Co was 21.40. The lowest was 0.24. And the median was 0.46.

XZIM:SEED.ZW's Price-to-Graham-Number is ranked worse than
97.09% of 172 companies
in the Agriculture industry
Industry Median: 1.225 vs XZIM:SEED.ZW: 7.01

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


Seed Co Graham Number Historical Data

The historical data trend for Seed 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.

Seed Co Graham Number Chart

Seed Co Annual Data
Trend Mar09 Mar11 Mar12 Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
Get a 7-Day Free Trial 9.32 - 91.05 - 666.18

Seed Co Semi-Annual Data
Mar09 Mar11 Sep11 Mar12 Sep12 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 - 184.27 253.68 445.34 25.24

Competitive Comparison of Seed Co's Graham Number

For the Agricultural Inputs subindustry, Seed 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.


Seed Co's Price-to-Graham-Number Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Seed Co's Price-to-Graham-Number distribution charts can be found below:

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



Seed Co Graham Number Calculation

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

Seed Co's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*319.888*61.66)
=666.18

Seed Co's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.987*28.691)
=25.24

* 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.


Seed Co  (XZIM:SEED.ZW) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=176.9505/25.24
=7.01

* 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.


Seed Co Graham Number Related Terms

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


Seed Co (XZIM:SEED.ZW) Business Description

Traded in Other Exchanges
N/A
Address
Shamwari Road, Stapleford, Westgate, P.O. Box WGT 64, Harare, ZWE
Seed Co Ltd is engaged in the business of processing agricultural seeds. The company is involved in the breeding, multiplication, and distribution of mainly hybrid seed varieties for crops such as maize, wheat, soya beans, sugar beans, cowpeas, sorghum, groundnuts, and vegetables. It generates maximum revenue from the maize crop.

Seed Co (XZIM:SEED.ZW) Headlines

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