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Infinity Development Holdings Company (HKSE:00640) Graham Number : HK$1.54 (As of Sep. 2023)


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What is Infinity Development Holdings Company 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 (2024-05-12), the stock price of Infinity Development Holdings Company is HK$0.73. Infinity Development Holdings Company's graham number for the quarter that ended in Sep. 2023 was HK$1.54. Therefore, Infinity Development Holdings Company's Price to Graham Number ratio for today is 0.47.

The historical rank and industry rank for Infinity Development Holdings Company's Graham Number or its related term are showing as below:

HKSE:00640' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.41   Med: 0.64   Max: 1.98
Current: 0.48

During the past 13 years, the highest Price to Graham Number ratio of Infinity Development Holdings Company was 1.98. The lowest was 0.41. And the median was 0.64.

HKSE:00640's Price-to-Graham-Number is ranked better than
94.31% of 1142 companies
in the Chemicals industry
Industry Median: 1.5 vs HKSE:00640: 0.48

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


Infinity Development Holdings Company Graham Number Historical Data

The historical data trend for Infinity Development Holdings Company'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.

Infinity Development Holdings Company Graham Number Chart

Infinity Development Holdings Company Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.26 1.30 1.15 1.58 1.54

Infinity Development Holdings Company Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 1.15 1.10 1.56 1.62 1.54

Competitive Comparison of Infinity Development Holdings Company's Graham Number

For the Specialty Chemicals subindustry, Infinity Development Holdings Company'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.


Infinity Development Holdings Company's Price-to-Graham-Number Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Infinity Development Holdings Company's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Infinity Development Holdings Company's Price-to-Graham-Number falls into.



Infinity Development Holdings Company Graham Number Calculation

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

Infinity Development Holdings Company's Graham Number for the fiscal year that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*0.9*0.117)
=1.54

Infinity Development Holdings Company's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*0.9*0.117)
=1.54

* 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.


Infinity Development Holdings Company  (HKSE:00640) 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.

Infinity Development Holdings Company's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=0.73/1.54
=0.47

* 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.


Infinity Development Holdings Company Graham Number Related Terms

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Infinity Development Holdings Company (HKSE:00640) Business Description

Traded in Other Exchanges
N/A
Address
16 Andar A-D, Macau Finance Centre, Rua de Pequim No. 202A-246, Macau, MAC
Infinity Development Holdings Company Ltd is an investment holding company. The company focuses on manufacturing and selling adhesives, primers, hardeners, vulcanized shoes, and adhesive related products for the footwear industry. Its geographical segments include China, Singapore, India, Regions of Hong Kong, Macau and Taiwan, Vietnam and Cambodia, Indonesia, and Bangladesh, of which the vast majority of its revenue is generated from Vietnam and Cambodia.

Infinity Development Holdings Company (HKSE:00640) Headlines

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