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Nuveen CA Dividend Advantage Muni Fund 2 (Nuveen CA Dividend Advantage Muni Fund 2) Graham Number : $27.69 (As of Aug. 2016)


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What is Nuveen CA Dividend Advantage Muni Fund 2 Graham Number?

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 (2024-04-26), the stock price of Nuveen CA Dividend Advantage Muni Fund 2 is $19.915. Nuveen CA Dividend Advantage Muni Fund 2's graham number for the quarter that ended in Aug. 2016 was $27.69. Therefore, Nuveen CA Dividend Advantage Muni Fund 2's Price to Graham Number ratio for today is 0.72.

The historical rank and industry rank for Nuveen CA Dividend Advantage Muni Fund 2's Graham Number or its related term are showing as below:

NVX's Price-to-Graham-Number is not ranked *
in the Asset Management industry.
Industry Median: 0.77
* 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.


Nuveen CA Dividend Advantage Muni Fund 2 Graham Number Historical Data

The historical data trend for Nuveen CA Dividend Advantage Muni Fund 2'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.

Nuveen CA Dividend Advantage Muni Fund 2 Graham Number Chart

Nuveen CA Dividend Advantage Muni Fund 2 Annual Data
Trend Feb11 Feb12 Feb13 Feb14 Feb15 Feb16
Graham Number
Get a 7-Day Free Trial 32.24 25.71 - 25.48 19.74

Nuveen CA Dividend Advantage Muni Fund 2 Semi-Annual Data
Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.94 25.45 17.10 19.76 27.69

Competitive Comparison of Nuveen CA Dividend Advantage Muni Fund 2's Graham Number

For the Asset Management subindustry, Nuveen CA Dividend Advantage Muni Fund 2'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.


Nuveen CA Dividend Advantage Muni Fund 2's Price-to-Graham-Number Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Nuveen CA Dividend Advantage Muni Fund 2's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Nuveen CA Dividend Advantage Muni Fund 2's Price-to-Graham-Number falls into.



Nuveen CA Dividend Advantage Muni Fund 2 Graham Number Calculation

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

Nuveen CA Dividend Advantage Muni Fund 2's Graham Number for the fiscal year that ended in Feb. 2016 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*16.063*1.078)
=19.74

Nuveen CA Dividend Advantage Muni Fund 2's Graham Number for the quarter that ended in Aug. 2016 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*16.703*2.04)
=27.69

* 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.


Nuveen CA Dividend Advantage Muni Fund 2  (AMEX:NVX) 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.

Nuveen CA Dividend Advantage Muni Fund 2's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Aug. 2016 )
=19.915/27.69
=0.72

* 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.


Nuveen CA Dividend Advantage Muni Fund 2 Graham Number Related Terms

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Nuveen CA Dividend Advantage Muni Fund 2 (Nuveen CA Dividend Advantage Muni Fund 2) Business Description

Traded in Other Exchanges
N/A
Address
Nuveen CA Dividend Advantage Muni Fund 2 is a closed-end investment company. The Fund's investment objective is to provide an attractive level of total return, primarily through long-term capital appreciation and secondarily through income and gains.
Executives
Christopher M. Rohrbacher officer: Vice President 333 W. WACKER DRIVE, C/O NUVEEN INVESTMENTS, CHICAGO IL 60606
Albin F Moschner other: Trustee C/O LURIO & ASSOCIATES, P.C., 2005 MARKET STREET, SUITE 3120, PHILADELPHIA PA 19103
Nathaniel T. Jones officer: Vice President and Treasurer C/O NUVEEN 333 W. WACKER DRIVE, STE 3400, CHICAGO IL 60606
Margaret L. Wolff other: Trustee C/O NUVEEN 333 W. WACKER DR., STE 3400, CHICAGO IL 60606
Citigroup Inc 10 percent owner 388 GREENWICH STREET, NEW YORK NY 10013
Sherri A Hlavacek officer: Vice President and Treasurer 333 WEST WACKER DRIVE, C/O NUVEEN INVESTMENTS, CHICAGO IL 60606
David J Lamb officer: Vice President 333 W WACKER DRIVE, C/O NUVEEN INVESTMENTS, CHICAGO IL 60606
Schreier Thomas S Jr other: Trustee C/O NORTHWEST AIRLINES, 1689 NONCONNAN BLVD, MEMPHIS TN 38132
John Kevin Nelson other: Trustee C/O NUVEEN INVESTMENTS, 333 W. WACKER DR, STE 3400, CHICAGO IL 60606
Joel T. Slager officer: Vice President C/O NUVEEN INVESTMENTS, 333 W. WACKER DR, STE 3400, CHICAGO IL 60606
Steven M. Hlavin other: Portfolio Manager 333 W. WACKER DRIVE, SUITE 2900, CHICAGO IL 60606
Bank Of America Corp /de/ 10 percent owner BANK OF AMERICA CORPORATE CENTER, 100 N TRYON ST, CHARLOTTE NC 28255
Blue Ridge Investments, L.l.c. 10 percent owner ONE BRYANT PARK, NEW YORK NY 10036
Bank Of America Na 10 percent owner 100 N. TRYON STREET, CHARLOTTE NC 28255
Christopher L Drahn other: Portfolio Manager 800 NICOLLET MALL, MAIL STOP BC-MN-H21C, MINNEAPOLIS MN 55402