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YASKAWA Electric (FRA:YEC0) Graham Number : €31.24 (As of Feb. 2024)


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What is YASKAWA Electric Graham Number?

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 (2024-04-24), the stock price of YASKAWA Electric is €72.50. YASKAWA Electric's graham number for the quarter that ended in Feb. 2024 was €31.24. Therefore, YASKAWA Electric's Price to Graham Number ratio for today is 2.32.

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

FRA:YEC0' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.22   Med: 2.17   Max: 4.53
Current: 2.42

During the past 13 years, the highest Price to Graham Number ratio of YASKAWA Electric was 4.53. The lowest was 1.22. And the median was 2.17.

FRA:YEC0's Price-to-Graham-Number is ranked worse than
75.58% of 2211 companies
in the Industrial Products industry
Industry Median: 1.5 vs FRA:YEC0: 2.42

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


YASKAWA Electric Graham Number Historical Data

The historical data trend for YASKAWA Electric'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.

YASKAWA Electric Graham Number Chart

YASKAWA Electric Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.00 18.45 27.97 32.79 30.87

YASKAWA Electric Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Graham Number Get a 7-Day Free Trial 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 33.03 32.78 31.91 30.50 31.24

Competitive Comparison of YASKAWA Electric's Graham Number

For the Electrical Equipment & Parts subindustry, YASKAWA Electric'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.


YASKAWA Electric's Price-to-Graham-Number Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, YASKAWA Electric's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where YASKAWA Electric's Price-to-Graham-Number falls into.



YASKAWA Electric Graham Number Calculation

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

YASKAWA Electric's Graham Number for the fiscal year that ended in Feb. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*17.663*2.398)
=30.87

YASKAWA Electric's Graham Number for the quarter that ended in Feb. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*17.663*2.456)
=31.24

* 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.


YASKAWA Electric  (FRA:YEC0) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Feb. 2024 )
=72.50/31.24
=2.32

* 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.


YASKAWA Electric Graham Number Related Terms

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YASKAWA Electric (FRA:YEC0) Business Description

Traded in Other Exchanges
Address
2-1, Kurosaki-shiroishi, Yahatanishi-ku, Kitakyushu, JPN, 806-0004
Yaskawa Electric manufactures motion control components (servo motors and inverters), industrial robots, and other motor-based products. It operates mainly in Asia, the Americas, and Europe as one of the leading players in the AC servo motor/controller, AC drives (inverter), and robotics markets. According to the company, it has the leading global share with AC Servo motors/controllers, where the company's cumulative AC servo motor shipments reached 20 million units in 2020, and it is also considered as one of the "big four" industrial robotics companies. The company was founded in 1915, and its head office is in Kitakyushu, Fukuoka Prefecture, Japan.

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