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Ultra Clean Holdings Graham Number

: $18.39 (As of Jun. 2022)
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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 (2022-08-12), the stock price of Ultra Clean Holdings is $32.90. Ultra Clean Holdings's graham number for the quarter that ended in Jun. 2022 was $18.39. Therefore, Ultra Clean Holdings's Price to Graham Number ratio for today is 1.79.

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

UCTT' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.47   Med: 1.76   Max: 8.44
Current: 1.79

During the past 13 years, the highest Price to Graham Number ratio of Ultra Clean Holdings was 8.44. The lowest was 0.47. And the median was 1.76.

UCTT's Price-to-Graham-Number is ranked worse than
57.48% of 682 companies
in the Semiconductors industry
Industry Median: 1.51 vs UCTT: 1.79

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


Ultra Clean Holdings Graham Number Historical Data

The historical data trend for Ultra Clean Holdings'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.

Ultra Clean Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.39 7.08 - 14.51 21.19

Ultra Clean Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 16.03 17.58 21.19 22.32 18.39

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Ultra Clean Holdings'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.

   

Ultra Clean Holdings Graham Number Distribution

For the Semiconductors industry and Technology sector, Ultra Clean Holdings's Graham Number distribution charts can be found below:

* The bar in red indicates where Ultra Clean Holdings's Graham Number falls into.



Ultra Clean Holdings Graham Number Calculation

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

Ultra Clean Holdings's Graham Number for the fiscal year that ended in Dec. 2021 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*7.421*2.69)
=21.19

Ultra Clean Holdings's Graham Number for the quarter that ended in Jun. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*8.592*1.75)
=18.39

* 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.


Ultra Clean Holdings  (NAS:UCTT) 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.

Ultra Clean Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2022 )
=32.90/18.39
=1.79

* 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.


Ultra Clean Holdings Graham Number Related Terms

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


Ultra Clean Holdings Business Description

Ultra Clean Holdings logo
Traded in Other Exchanges
Address
26462 Corporate Avenue, Hayward, CA, USA, 94545
Ultra Clean Holdings Inc, through its subsidiaries, manufactures and supplies production tools, modules, and subsystems for the semiconductor capital equipment industry. The product range includes precision robotic solutions, gas delivery systems, a variety of industrial and automation production equipment products; subsystems that include wafer cleaning subsystems, chemical delivery modules, top-plate assemblies, frame assemblies, and process modules. Its customer base includes firms in semiconductor capital equipment industry, medical, energy, industrial, flat panel and research equipment industries. Its principal markets are North America, Asia, and Europe. Its largest end market by revenue is the United States.
Executives
Cook Christopher S officer: President, Products Div ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD CA 94545
Palfrey Jamie J. officer: SVP, Global Human Resources ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD CA 94545
Mckibben Jeffrey L. officer: Chief Information Officer C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD, CA 94545
Widmann Amir officer: President, Fluid Solutions C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD, CA 94545
Seto Jacqueline A. director C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD CA 94545
Cho Paul Yoonku officer: General Counsel and Secretary C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD CA 94545
Siu Chris officer: Chief Accounting Officer & SVP 3408 GARRETT DRIVE SANTA CLARA CA 95054-2803
Bentinck Bill officer: Pres, Semiconductor Svcs Bus. C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVE HAYWARD CA 94545
Chinnasami Vijayan S. officer: Chief Operating Officer C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD CA 94545
Nicholas Scott H. officer: Please see Remarks C/O ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVENUE HAYWARD CA 94545
Maddock Ernest E director LAM RESEARCH 4650 CUSHING PARKWAY FREMONT CA 94538
Andreson Jeff director 3560 BASSETT STREET SANTA CLARA CA 95054
Speirs David officer: SVP, North America ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVE HAYWARD CA 94545
Williams William Joe officer: SVP, Customer Business Mgmt ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVE HAYWARD CA 94545
Sterling Joan officer: SVP, Human Resources ULTRA CLEAN HOLDINGS, INC. 26462 CORPORATE AVE HAYWARD CA 94545

Ultra Clean Holdings Headlines

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