K2 Asset Management Holdings (ASX:KAM) Graham Number

: A$N/A (As of Dec. 2023)

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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 (2024-04-19), the stock price of K2 Asset Management Holdings is A$0.05. K2 Asset Management Holdings's graham number for the quarter that ended in Dec. 2023 was A$N/A. Therefore, K2 Asset Management Holdings's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for K2 Asset Management Holdings's Graham Number or its related term are showing as below:

During the past 13 years, the highest Price to Graham Number ratio of K2 Asset Management Holdings was 3.14. The lowest was 0.79. And the median was 1.67.

ASX:KAM's Price-to-Graham-Number is not ranked ^*
in the Asset Management industry.
Industry Median: 0.76
* 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.

K2 Asset Management Holdings Graham Number Historical Data

The historical data trend for K2 Asset Management Holdings'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.

K2 Asset Management Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Graham Number

0.10

K2 Asset Management Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Graham Number																-	-	-	-	-

Competitive Comparison

For the Asset Management subindustry, K2 Asset Management Holdings'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.

K2 Asset Management Holdings Price-to-Graham-Number Distribution

For the Asset Management industry and Financial Services sector, K2 Asset Management Holdings's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where K2 Asset Management Holdings's Price-to-Graham-Number falls into.

K2 Asset Management Holdings Graham Number Calculation

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

K2 Asset Management Holdings's Graham Number for the fiscal year that ended in Jun. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	0.036	*	-0.008)
=	N/A

K2 Asset Management Holdings's Graham Number for the quarter that ended in Dec. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	0.035	*	-0.005)
=	N/A

K2 Asset Management Holdings (ASX:KAM) 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.

K2 Asset Management Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Dec. 2023 )
	=	0.05	/	N/A
	=	N/A

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.

K2 Asset Management Holdings Graham Number Related Terms

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K2 Asset Management Holdings (ASX:KAM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » K2 Asset Management Holdings Ltd (ASX:KAM) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

N/A

Address

101 Collins Street, Level 32, Melbourne, VIC, AUS, 3000

Website

https://www.k2am.com.au

K2 Asset Management Holdings Ltd is an Australia-based fund holding company specializing in managing funds for retail, wholesale, and institutional investors. The firm invests in the public equity markets across the globe. It manages equity mutual funds for its clients. The company gets a majority of its revenue from management and performance fees.

K2 Asset Management Holdings (ASX:KAM) Headlines

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