GURUFOCUS.COM » STOCK LIST » USA » NAS » Academy Sports and Outdoors Inc (NAS:ASO) » Definitions » Graham Number
Switch to:

Academy Sports and Outdoors (NAS:ASO) Graham Number

: $15.64 (As of Oct. 2022)
View and export this data going back to 2020. Start your Free Trial

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 (2023-01-28), the stock price of Academy Sports and Outdoors is $55.65. Academy Sports and Outdoors's graham number for the quarter that ended in Oct. 2022 was $15.64. Therefore, Academy Sports and Outdoors's Price to Graham Number ratio for today is 3.56.

The historical rank and industry rank for Academy Sports and Outdoors's Graham Number or its related term are showing as below:

ASO' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.82   Med: 3.33   Max: 10.83
Current: 3.56

During the past 5 years, the highest Price to Graham Number ratio of Academy Sports and Outdoors was 10.83. The lowest was 2.82. And the median was 3.33.

ASO's Price-to-Graham-Number is ranked worse than
86.04% of 702 companies
in the Retail - Cyclical industry
Industry Median: 1.27 vs ASO: 3.56

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


Academy Sports and Outdoors Graham Number Historical Data

The historical data trend for Academy Sports and Outdoors'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.

Academy Sports and Outdoors Annual Data
Trend Jan18 Jan19 Jan20 Jan21 Jan22
Graham Number
- - - - 7.15

Academy Sports and Outdoors Quarterly Data
Jan18 Jan19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
Graham Number 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 - 7.15 12.83 12.91 15.64

Competitive Comparison

For the Specialty Retail subindustry, Academy Sports and Outdoors's Graham Number, along with its competitors' market caps and 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.

   

Academy Sports and Outdoors Graham Number Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Academy Sports and Outdoors's Graham Number distribution charts can be found below:

* The bar in red indicates where Academy Sports and Outdoors's Graham Number falls in comparison to its industry or sector. The grey bar indicates the Graham Number's extreme value range as defined by GuruFocus.



Academy Sports and Outdoors Graham Number Calculation

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

Academy Sports and Outdoors's Graham Number for the fiscal year that ended in Jan. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.319*7.12)
=7.15

Academy Sports and Outdoors's Graham Number for the quarter that ended in Oct. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*1.532*7.1)
=15.64

* 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.


Academy Sports and Outdoors  (NAS:ASO) 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.

Academy Sports and Outdoors's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Oct. 2022 )
=55.65/15.64
=3.56

* 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.


Academy Sports and Outdoors Graham Number Related Terms

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


Academy Sports and Outdoors (NAS:ASO) Business Description

Academy Sports and Outdoors logo
Traded in Other Exchanges
N/A
Address
1800 North Mason Road, Katy, TX, USA, 77449
Academy Sports and Outdoors Inc is engaged in the retail business of sporting goods and outdoor recreation products. The company offers outdoor clothing, backpacks, sunglasses, luggage items, shooting equipment, fishing equipment, boating and water sports equipment, backyard recreation products, outdoor cooking equipment, fitness equipment, electronic items, dog supplies, and other products.
Executives
Turner Christopher Lee director 1441 GARDINER LANE LOUISVILLE KY 40213
Turney Sharen J director THREE LIMITED PARKWAY COLUMBUS OH 43230
Raff Beryl director 5555 DARROW RD HUDSON OH 44236
Nealon Thomas M director 6501 LEGACY DRIVE PLANO TX 75024
Harriman Sherry L. officer: SVP, Logistics & Supply Chain C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 N MASON ROAD KATY TX 77449
Beck Wendy A. director C/O NORWEGIAN CRUISE LINE HOLDINGS LTD. 7665 CORPORATE CENTER DRIVE MIAMI FL 33126
Allstar Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr 2006 Allstar Blocker L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr 2006 Fund (allstar) L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Davis Heather A. officer: VP, Controller C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 NORTH MASON ROAD KATY TX 77449
Allstar Co-invest Gp Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Tweedy Jeffrey C. director C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 NORTH MASON ROAD KATY TX 77449
Allstar Co-invest Blocker L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Ennis William S. officer: See Remarks C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 NORTH MASON ROAD KATY TX 77449
Patel Vishal director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD. ROSEMONT IL 60018

Academy Sports and Outdoors (NAS:ASO) Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership