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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 (2024-05-13), the stock price of Landstar System is $184.57. Landstar System's graham number for the quarter that ended in Mar. 2024 was $61.90. Therefore, Landstar System's Price to Graham Number ratio for today is 2.98.
The historical rank and industry rank for Landstar System's Graham Number or its related term are showing as below:
During the past 13 years, the highest Price to Graham Number ratio of Landstar System was 3.21. The lowest was 1.82. And the median was 2.52.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
The historical data trend for Landstar System'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.
Landstar System Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Graham Number | Get a 7-Day Free Trial | 46.78 | 44.86 | 69.74 | 78.71 | 65.10 |
Landstar System Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Graham Number | Get a 7-Day Free Trial | 76.65 | 74.24 | 71.50 | 65.06 | 61.90 |
For the Integrated Freight & Logistics subindustry, Landstar System'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.
For the Transportation industry and Industrials sector, Landstar System's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Landstar System's Price-to-Graham-Number falls into.
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Landstar System'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 | * | 26.364 | * | 7.145) |
= | 65.10 |
Landstar System's Graham Number for the quarter that ended in Mar. 2024 is calculated as
Graham Number | |||||
= | sqrt of (22.5 | * | Tangible Book per Share | * | EPS without NRI (TTM)) |
= | sqrt of (22.5 | * | 27.278 | * | 6.242) |
= | 61.90 |
* 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.
Landstar System (NAS:LSTR) 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.
Landstar System's Price to Graham number Ratio for today is calculated as
Price to Graham number | = | Share Price (Today) | / | Graham number (Q: Mar. 2024 ) |
= | 184.57 | / | 61.90 | |
= | 2.98 |
* 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.
Thank you for viewing the detailed overview of Landstar System's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Joseph J Beacom | officer: VP, Chief Safety Officer | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
James B Gattoni | officer: Vice President - Controller | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Ricardo S Coro | officer: Vice President - CIO | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Michael K Kneller | officer: VP General Counsel & Secy | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Aimee M Cooper | officer: VP & CAO | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
James P Todd | officer: VP and CFO | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Teresa L White | director | 1932 WYNNTON RD, COLUMBUS GA 31999 |
James L Liang | director | C/O LENCO MOBILE INC., 345 CHAPALA STREET, SANTA BARBARA CA 93101 |
Federico L Pensotti | officer: VP and CFO | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
L Kevin Stout | officer: VP, CFO and Asst Secretary | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Dr. Homaira Akbari | director | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Larry J Thoele | director | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
Diana M Murphy | director | C/O LANDSTAR SYSTEM INC, 13410 SUTTON PARK DR S, JACKSONVILLE FL 32224 |
Anthony J Orlando | director | TWO NORTH RIVERSIDE PLAZA, STE 600, CHICAGO IL 60606 |
Robert S Brasher | officer: VP & Chief Commercial Officer | 13410 SUTTON PARK DRIVE SOUTH, JACKSONVILLE FL 32224 |
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