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.
The historical rank and industry rank for Campus Crest Communities's Graham Number or its related term are showing as below:
CCG's Price-to-Graham-Number is not ranked *
in the REITs industry.
Industry Median: 0.78 * 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.
Campus Crest Communities Graham Number Historical Data
* 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.
Competitive Comparison of Campus Crest Communities's Graham Number
For the REIT - Diversified subindustry, Campus Crest Communities'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.
Campus Crest Communities's Price-to-Graham-Number Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Campus Crest Communities's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Campus Crest Communities's Price-to-Graham-Number falls into.
Campus Crest Communities Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Campus Crest Communities's Graham Number for the fiscal year that ended in Dec. 2014 is calculated as
* 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.
Campus Crest Communities (NYSE:CCG) 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.
Campus Crest Communities's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Sep. 2015 )
=
7.00
/
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.
Campus Crest Communities Graham Number Related Terms
Thank you for viewing the detailed overview of Campus Crest Communities's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Campus Crest Communities (Campus Crest Communities) Business Description
Campus Crest Communities Inc was incorporated in the State of Maryland on 1 March 2010. On October 19, 2010, it completed its initial public offering of common stock. The Company is a self-managed, self-administered real estate investment trust ("REIT") focused on owning and managing a high-quality student housing portfolio located close to college campuses. As of December 31, 2014, the Company owned interests in 47 operating student housing The Grove properties containing approximately 9,700 apartment units and 26,300 beds. Thirty-six of Company's operating The Grove properties are wholly-owned and eleven of The Grove properties are owned through joint ventures with HSRE. As of December 31, 2014, it also owned interests in 36 operating student housing Copper Beech branded properties containing approximately 6,500 apartment units and 17,300 beds. The majority of Company's operating properties other than those in the CB Portfolio, evo and Toledo operate under The Grove brand. The Company is subject to competition for student-tenants from on-campus housing owned by universities and colleges and also competes with other regional and national owner-operators of off-campus student housing in a number of markets as well as with smaller local owner-operators.
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