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Canopy Growth (NAS:CGC) Graham Number

: $N/A (As of Jun. 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 (2023-09-29), the stock price of Canopy Growth is $0.7967. Canopy Growth's graham number for the quarter that ended in Jun. 2023 was $N/A. Therefore, Canopy Growth's Price to Graham Number ratio for today is N/A.

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

CGC's Price-to-Graham-Number is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.69
* 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.


Canopy Growth Graham Number Historical Data

The historical data trend for Canopy Growth'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.

Canopy Growth Annual Data
Trend Jul13 Dec14 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Canopy Growth Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Canopy Growth'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.

   

Canopy Growth Graham Number Distribution

For the Drug Manufacturers industry and Healthcare sector, Canopy Growth's Graham Number distribution charts can be found below:

* The bar in red indicates where Canopy Growth'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.



Canopy Growth Graham Number Calculation

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

Canopy Growth'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*0.684*-5.167)
=N/A

Canopy Growth's Graham Number for the quarter that ended in Jun. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.695*-1.737)
=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.


Canopy Growth  (NAS:CGC) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2023 )
=0.7967/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.


Canopy Growth Graham Number Related Terms

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


Canopy Growth (NAS:CGC) Business Description

Canopy Growth logo
Traded in Other Exchanges
Address
1 Hershey Drive, Smiths Falls, ON, CAN, K7A 0A8
Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Doja, 7ACRES, Tweed, and Deep Space. Its non-THC products include sports drink BioSteel, skincare products under This Works, Martha Stewart CBD, and Storz & Bickel vaporizers. Canopy growth is attempting to merge its U.S. assets into a separately operated holding company, Canopy USA, which will not be consolidated into the Canadian company's financials.
Executives
Christelle Gedeon officer: See Remarks 3 HOLLYHOCK COURT, TORONTO Z4 M3B 0B4
Garth Hankinson director C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Hong Judy Eun Joo officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS Z4 K7A 0A8
Greenstar Ii Holdings Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Greenstar Ii Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Grant Julious C. Jr officer: Chief Commercial Officer 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Sabia James A. Jr. director C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Greenstar Canada Investment Limited Partnership 10 percent owner 1055 WEST HASTINGS STREET, SUITE 1700, VANCOUVER A1 V6E 2E9
Constellation Brands Canada Holdings Ulc 10 percent owner QUEEN'S MARQUE, 600-1741 LOWER WATER STREET, HALIFAX A5 B3J 0J2
Theresa Yanofsky director 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Thomas Carlton Stewart officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Tomas Iv Shipley officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Cbg Holdings Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Constellation Capital Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Greenstar Canada Investment Corp 10 percent owner 1055 WEST HASTINGS STREET, SUITE 1700, VANCOUVER A1 V6E 2E9