Extreme Networks (NAS:EXTR) Graham Number

: $N/A (As of Mar. 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 (2023-06-02), the stock price of Extreme Networks is $21.80. Extreme Networks's graham number for the quarter that ended in Mar. 2023 was $N/A. Therefore, Extreme Networks's Price to Graham Number ratio for today is N/A.

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

During the past 13 years, the highest Price to Graham Number ratio of Extreme Networks was 29.74. The lowest was 0.00. And the median was 2.36.

EXTR's Price-to-Graham-Number is not ranked ^*
in the Hardware industry.
Industry Median: 1.40
* 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.

Extreme Networks Graham Number Historical Data

The historical data trend for Extreme Networks'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.

Extreme Networks Annual Data

Trend

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Graham Number

Extreme Networks Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Graham Number																-	-	-	-	-

Competitive Comparison

For the Communication Equipment subindustry, Extreme Networks'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

Extreme Networks Graham Number Distribution

For the Hardware industry and Technology sector, Extreme Networks's Graham Number distribution charts can be found below:

* The bar in red indicates where Extreme Networks'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.

Extreme Networks Graham Number Calculation

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

Extreme Networks's Graham Number for the fiscal year that ended in Jun. 2022 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	-2.648	*	0.33)
=	N/A

Extreme Networks's Graham Number for the quarter that ended in Mar. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	-2.414	*	0.43)
=	N/A

Extreme Networks (NAS:EXTR) 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.

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

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Mar. 2023 )
	=	21.80	/	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.

Extreme Networks Graham Number Related Terms

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

Extreme Networks (NAS:EXTR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Extreme Networks Inc (NAS:EXTR) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

EXM:Germany

Address

2121 RDU Center Drive, Suite 300, Morrisville, NC, USA, 27560

Website

https://www.extremenetworks.com

Extreme Networks Inc provides software-driven networking services for enterprise customers. Its products include wired and wireless network infrastructure equipment and software for network management, policy, analytics, and access controls. It offers high-density Wi-Fi, centralized management, cloud-based network management, and application analytics capabilities. The company operates in a single segment which develops and markets network infrastructure equipment. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.

Executives

Joseph A Vitalone	officer: Chief Revenue Officer	CO SHORETEL INC, 960 STEWART DRIVE, SUNNYVALE CA 94085
Ingrid Burton	director	1011 MCCARTHY BOULEVARD --, MILPITAS CA 95035
Remi Thomas	officer: EVP Chief Financial Officer	6480 VIA DEL ORO, SAN JOSE CA 95119
Matthew Howard Cleaver	officer: Interim CFO	6480 VIA DEL ORO, SAN JOSE CA 95119
Maryam Alexandrian-adams	director	516 WELLS COURT, SAN RAMON CA 94582
Edward Meyercord	director, officer: President and CEO	C/O TALK AMERICA HOLDINGS INC, 12020 SUNRISE VALLEY DR, STE. 1500, RESTON VA 20191
John C Shoemaker	director	1143 BORREGAS AVENUE, SUNNYVALE CA 94089
John H Kispert	director
Benjamin Drew Davies	officer: EVP Chief Financial Officer	1501 INDUSTRIAL ROAD, SAN CARLOS X1 94070
Katayoun Motiey	officer: EVP General Counsel and Corpor	C/O EXTREME NETWORKS, INC, 145 RIO ROBLES, SAN JOSE CA 95134
Kathleen M Holmgren	director	C/O EXTREME NETWORKS, INC, 145 RIO ROBLES, SAN JOSE CA 95134
Robert J Gault	officer: EVP Global Sales, Channel, Svc	C/O EXTREME NETWORKS, INC, 145 RIO ROBLES, SAN JOSE CA 95134
Eric Broockman	officer: CTO and EVP Engineering	C/O EXTREME NETWORKS, INC, 145 RIO ROBLES, SAN JOSE CA 95134
Kelley Steven-waiss	officer: EVP Chief HR Officer	7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Norman J. Rice	officer: EVP Marketing & Corp Develop	ONE MIDDLE STREET, SUITE 4, PORTSMOUTH NH 03801