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IPG Photonics Graham Number

: $67.29 (As of Jun. 2021)
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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 (2021-10-18), the stock price of IPG Photonics is $163.05. IPG Photonics's graham number for the quarter that ended in Jun. 2021 was $67.29. Therefore, IPG Photonics's Price to Graham Number ratio for today is 2.42.

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

NAS:IPGP' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.97   Med: 2.08   Max: 5.54
Current: 2.45

0.97
5.54

During the past 13 years, the highest Price to Graham Number ratio of IPG Photonics was 5.54. The lowest was 0.97. And the median was 2.08.

NAS:IPGP's Price-to-Graham-Number is ranked lower than
99.99% of the 101 Companies
in the Semiconductors industry.

( Industry Median: 2.34 vs. NAS:IPGP: 2.45 )

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


IPG Photonics Graham Number Historical Data

The historical data trend for IPG Photonics'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.

IPG Photonics Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.61 71.49 79.55 56.50 55.80

IPG Photonics Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 47.98 44.39 55.80 61.50 67.29

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, IPG Photonics'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.

   

IPG Photonics Graham Number Distribution

For the Semiconductors industry and Technology sector, IPG Photonics's Graham Number distribution charts can be found below:

* The bar in red indicates where IPG Photonics's Graham Number falls into.



IPG Photonics Graham Number Calculation

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

IPG Photonics's Graham Number for the fiscal year that ended in Dec. 2020 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*46.593*2.97)
=55.80

IPG Photonics's Graham Number for the quarter that ended in Jun. 2021 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*48.734*4.13)
=67.29

* 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.


IPG Photonics  (NAS:IPGP) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2021 )
=163.05/67.29
=2.42

* 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.


IPG Photonics Graham Number Related Terms

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


IPG Photonics Business Description

IPG Photonics logo
Industry
Technology » Semiconductors NAICS : 334413 SIC : 3674
Traded in Other Exchanges
Address
50 Old Webster Road, Oxford, MA, USA, 01540
IPG Photonics is a vertically integrated developer and manufacturer of high-performance fiber lasers, fiber amplifiers, and diode lasers, which are used in diverse applications in the manufacturing, automotive, industrial, aerospace, semiconductor, and consumer end markets. A large majority of the firm's revenue is derived from materials processing applications for fiber lasers, including cutting and welding, marking and engraving, and micro-processing. Roughly a third of the firm's revenue is generated in China, with the rest coming from North America, Europe, Japan, Australia, and other countries across the world.
Executives
Burgomaster Thomas J officer: Chief Accounting Officer 50 OLD WEBSTER ROAD OXFORD MA 01540
Ness Trevor officer: SVP, Worldwide Sales & Mrkting C/O 50 OLD WEBSTER ROAD OXFORD MA 01540
Shcherbakov Eugene A director, 10 percent owner, officer: SVP, MD IPG Laser GmbH IPG PHOTONICS CORPORATION 50 OLD WEBSTER ROAD OXFORD MA 01540
Peeler John R director DYNATECH CORP 3 NEW ENGLAND EXECUTIVE PARK BURLINGTON MA 01803
Samartsev Igor director, officer: Chief Technology Officer IPG PHOTONICS CORPORATION 50 OLD WEBSTER ROAD OXFORD MA 01540
Child Michael C director 125 HIGH ST STE 2500 BOSTON MA 02110
Lopresti Angelo P 10 percent owner, officer: SVP, Secretary & Gen Counsel IPG PHOTONICS CORPORATION 50 OLD WEBSTER ROAD OXFORD MA 01540
Valentin Gapontsev Trust I 10 percent owner 50 OLD WEBSTER ROAD OXFORD MA 01540
Seifert Thomas J director 101 TOWNSEND STREET SAN FRANCISCO CA 94107
Meurice Eric director % VERIGY LTD 5301 STEVENS CREEK BLVD SANTA CLARA CA 95051
Dougherty Greg director 40919 ENCYCLOPEDIA CIRCLE FREMONT CA 94538
Lego Catherine P director 3787 WOODSIDE ROAD WOODSIDE CA 94062
Ovtchinnikov Alexander 10 percent owner, officer: SVP, Components IPG PHOTONICS CORPORATION 50 OLD WEBSTER ROAD OXFORD MA 01540
Mammen Timothy Pv officer: SVP, Chief Financial Officer IPG PHOTONICS CORPORATION 50 OLD WEBSTER ROAD OXFORD MA 01540
Stukalin Felix I officer: SVP, North America Operations PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STUKALIN FELIX I a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

IPG Photonics Headlines

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