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Infinera (NAS:INFN) 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 Infinera is $4.8642. Infinera's graham number for the quarter that ended in Mar. 2023 was $N/A. Therefore, Infinera's Price to Graham Number ratio for today is N/A.

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

During the past 13 years, the highest Price to Graham Number ratio of Infinera was 5.02. The lowest was 0.00. And the median was 2.91.

INFN'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.


Infinera Graham Number Historical Data

The historical data trend for Infinera'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.

Infinera Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Infinera Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 Communication Equipment subindustry, Infinera'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.

   

Infinera Graham Number Distribution

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

* The bar in red indicates where Infinera'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.



Infinera Graham Number Calculation

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

Infinera's Graham Number for the fiscal year that ended in Dec. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*-0.457*-0.35)
=N/A

Infinera'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*-0.392*-0.21)
=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.


Infinera  (NAS:INFN) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2023 )
=4.8642/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.


Infinera Graham Number Related Terms

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


Infinera (NAS:INFN) Business Description

Infinera logo
Traded in Other Exchanges
Address
6373 San Ignacio Avenue, San Jose, CA, USA, 95119
Infinera Corp is a global supplier of networking solutions comprised of networking equipment, software and services. Its portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, compact modular platforms, optical line systems, coherent optical subsystems, a suite of automation software offerings, and support and professional services. The company's customers include operators of fixed line and mobile networks, including telecommunications service providers, internet content providers, cable providers, wholesale carriers, research and education institutions, large enterprises, utilities and government entities.
Executives
Roop Kalyan Lakkaraju director BENCHMARK ELECTRONICS, INC., 56 SOUTH ROCKFORD DRIVE, TEMPE AZ 85281
George Andrew Riedel director C/O NORTEL NETWORKS CORPORATION, 8200 DIXIE ROAD, SUITE 100, BRAMPTON A6 L6T 5P6
Christine Bucklin director 608 30TH STREET, MANHATTAN BEACH CA 90266
Amy H. Rice director 333 SOUTH GRAND AVE., 28TH FLOOR, LOS ANGELES CA 90071
Partners Ltd 10 percent owner 181 BAY STREET, BROOKFIELD PLACE, SUITE 300, TORONTO A6 M5J2T3
Brookfield Asset Management Inc. 10 percent owner BROOKFIELD PLACE, 181 BAY ST, STE 100, PO BOX 762, TORONTO A6 M5J2T3
Oaktree Fund Gp I, L.p. 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital I, L.p. 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Ocm Holdings I, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Holdings, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Fund Gp, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Optical Holdings, L.p. 10 percent owner C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Nicholas Walden officer: SVP, Worldwide Sales 140 CASPIAN COURT, SUNNYVALE CA 94089
Nancy Erba officer: Chief Financial Officer C/O INFINERA CORPORATION, 140 CASPIAN COURT, SUNNYVALE CA 94089
Michael H Fernicola officer: Chief Accounting Officer C/O INFINERA CORPORATION, 140 CASPIAN COURT, SUNNYVALE CA 94089

Infinera (NAS:INFN) Headlines

Other Sources

Infinera Announces 2023 Investor Day

By Yahoo Finance 2022-11-30