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Mohawk Industries (Mohawk Industries) Graham Number

: $98.99 (As of Dec. 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 (2024-04-18), the stock price of Mohawk Industries is $108.08. Mohawk Industries's graham number for the quarter that ended in Dec. 2023 was $98.99. Therefore, Mohawk Industries's Price to Graham Number ratio for today is 1.09.

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

MHK' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.77   Med: 1.23   Max: 2.92
Current: 1.09

During the past 13 years, the highest Price to Graham Number ratio of Mohawk Industries was 2.92. The lowest was 0.77. And the median was 1.23.

MHK's Price-to-Graham-Number is ranked better than
76.39% of 305 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.26 vs MHK: 1.09

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


Mohawk Industries Graham Number Historical Data

The historical data trend for Mohawk Industries'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.

Mohawk Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 126.47 107.81 159.05 130.85 134.70

Mohawk Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 135.49 116.10 103.40 89.86 98.99

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Mohawk Industries'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.


Mohawk Industries Price-to-Graham-Number Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Mohawk Industries's Price-to-Graham-Number distribution charts can be found below:

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



Mohawk Industries Graham Number Calculation

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

Mohawk Industries's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*87.742*9.19)
=134.70

Mohawk Industries's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*87.742*4.964)
=98.99

* 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.


Mohawk Industries  (NYSE:MHK) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=108.08/98.99
=1.09

* 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.


Mohawk Industries Graham Number Related Terms

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


Mohawk Industries (Mohawk Industries) Business Description

Traded in Other Exchanges
Address
160 South Industrial Boulevard, Calhoun, GA, USA, 30701
Mohawk Industries Inc manufactures a wide range of flooring products, including carpets, rugs, ceramic tile, laminate, wood, luxury vinyl tile, and vinyl flooring. Its operating segments include Global Ceramic, Flooring NA, and Flooring ROW. The company generates maximum revenue from the Global Ceramic segment. Geographically, it derives a majority of its revenue from the United States.
Executives
Suzanne L Helen other: Possible Group Member C/O MOHAWK INDUSTRIES INC, 2001 ANTIOCH ROAD, DALTON GA 30721
Rodney David Patton officer: General Counsel - VP 5855 RIVERMOND DRIVE, ATLANTA GA 30328
Jeffrey S Lorberbaum director, officer: President and CEO MOHAWK INDUSTRIES INC, P O BOX 12069, CALHOUN GA 30703
Bernard Thiers director NESTOR DE TIERESTRAAT 128, EINE C9 9700
Harkins William Wayne Ii officer: CAO and Corporate Controller 160 SOUTH INDUSTRIAL BLVD, CALHOUN GA 30701
Clifford Charles Suing officer: CAO and Corporate Controller 160 SOUTH INDUSTRIAL BLVD, CALHOUN GA 30701
Chistopher Wellborn director, officer: President-Dal-Tile MOHAWK INDUSTRIES INC, P O BOX 12069, CALHOUN GA 30703
Jerry W Burris director 5500 WAYZATA BLVD., SUITE 600, GOLDEN VALLEY MN 55416
James Brunk director, officer: Corporate Controller and CAO 251 MISTY HILL TRAIL, DALLAS GA 30132
Steven Hyosig Lee officer: CAO and Corporate Controller 160 SOUTH INDUSTRIAL BLVD, CALHOUN GA 30701
Frank H Boykin director, officer: Vice President-Finance & CFO 2042 OLD FORGE WAY, MARIETTA GA 30068
De Cock Paul F officer: President-Flooring NA ALPHONSE RENARDSTRAAT 41, ELSENE C9 1050
Filip Balcaen director PAULINE VAN POTTELSBERGHELAAN 10, 9051 SINT-DENIJS-WESTREM, GENT C9 9051
John Engquist director H&E EQUIPMENT SERVICES, 11100 MEAD ROAD, SUITE 200, BATON ROUGE LA 70816
Bruce Bruckmann director C/O MOHAWK INDUSTRIES INC, P O BOX 12069, CALHOUN GA 30703

Mohawk Industries (Mohawk Industries) Headlines