Avalara (NYSE:AVLR) Graham Number

: $N/A (As of Jun. 2022)

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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 (2023-09-24), the stock price of Avalara is $93.48. Avalara's graham number for the quarter that ended in Jun. 2022 was $N/A. Therefore, Avalara's Price to Graham Number ratio for today is N/A.

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

AVLR's Price-to-Graham-Number is not ranked ^*
in the Software industry.
Industry Median: 2.34
* 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.

Avalara Graham Number Historical Data

The historical data trend for Avalara'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.

Avalara Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Graham Number

Avalara Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Graham Number																-	-	-	-	-

Competitive Comparison

For the Software - Application subindustry, Avalara'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.

Annual Data Quarterly Data

Avalara Graham Number Distribution

For the Software industry and Technology sector, Avalara's Graham Number distribution charts can be found below:

* The bar in red indicates where Avalara'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.

Avalara Graham Number Calculation

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

Avalara's Graham Number for the fiscal year that ended in Dec. 2021 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	2.954	*	-1.57)
=	N/A

Avalara's Graham Number for the quarter that ended in Jun. 2022 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	2.972	*	-1.78)
=	N/A

Avalara (NYSE:AVLR) 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.

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

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Jun. 2022 )
	=	93.48	/	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.

Avalara Graham Number Related Terms

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

Avalara (NYSE:AVLR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Avalara Inc (NYSE:AVLR) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

N/A

Address

255 South King Street, Suite 1800, Seattle, WA, USA, 98104

Website

https://www.avalara.com

Avalara Inc provides compliance solutions. It provides software solutions that help businesses of all types and sizes comply with tax requirements for transactions worldwide. The company offers a broad and growing suite of compliance solutions for transaction taxes, such as sales and use tax, VAT, fuel excise tax, beverage alcohol, cross-border taxes, lodging tax, and communications tax. These solutions enable customers to automate the process of determining taxability, identifying applicable tax rates, determining and collecting taxes, preparing and filing returns, remitting taxes, maintaining tax records, and managing compliance documents. It generates revenue in the form of subscriptions and professional services.

Executives

Marcela Martin	director	C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Bruce T Crawford	director	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Srinivas Tallapragada	director	THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105
Ross Tennenbaum	officer: See Remarks	255 S KING ST, STE 1800, SEATTLE WA 98104
Brian Sharples	director	1250 CAPITAL OF TX HWY, BLDG 2, PLAZA 1, AUSTIN TX 78746
Wp Avlr Holdco Llc	10 percent owner	C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Amit Mathradas	officer: See Remarks	255 S KING ST, STE 1800, SEATTLE WA 98104
Kathleen Zwickert	director	255 S KING ST, STE 1800, SEATTLE WA 98104
William Ingram	officer: See Remarks	C/O LEAP WIRELESS INTERNATIONAL, INC., 5887 COPLEY DRIVE, SAN DIEGO CA 92111
Dooren Pascal Van	officer: See Remarks	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Rajeev Singh	director	6222 185TH AVENUE NE, REDMOND WA 98052
Marion R Foote	director	C/O KINETA, INC., 219 TERRY AVE. N., SUITE 300, SEATTLE WA 98109
Chelsea R. Stoner	director	C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Jared R. Vogt	director	C/O AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Daniel E. Manning	officer: Chief Accounting Officer	255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104