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Ford Motor Co Graham Number

: $26.12 (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 (2022-08-08), the stock price of Ford Motor Co is $15.755. Ford Motor Co's graham number for the quarter that ended in Jun. 2022 was $26.12. Therefore, Ford Motor Co's Price to Graham Number ratio for today is 0.60.

The historical rank and industry rank for Ford Motor Co's Graham Number or its related term are showing as below:

F' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.17   Med: 0.73   Max: 22.79
Current: 0.6

During the past 13 years, the highest Price to Graham Number ratio of Ford Motor Co was 22.79. The lowest was 0.17. And the median was 0.73.

F's Price-to-Graham-Number is ranked better than
78.64% of 880 companies
in the Vehicles & Parts industry
Industry Median: 1.21 vs F: 0.60

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


Ford Motor Co Graham Number Historical Data

The historical data trend for Ford Motor Co'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.

Ford Motor Co 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 19.43 13.43 1.36 - 34.07

Ford Motor Co 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 12.56 11.72 34.07 26.27 26.12

Competitive Comparison

For the Auto Manufacturers subindustry, Ford Motor Co'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.

   

Ford Motor Co Graham Number Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Ford Motor Co's Graham Number distribution charts can be found below:

* The bar in red indicates where Ford Motor Co's Graham Number falls into.



Ford Motor Co Graham Number Calculation

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

Ford Motor Co'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*11.596*4.45)
=34.07

Ford Motor Co'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*10.53*2.88)
=26.12

* 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.


Ford Motor Co  (NYSE:F) 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.

Ford Motor Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2022 )
=15.755/26.12
=0.60

* 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.


Ford Motor Co Graham Number Related Terms

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


Ford Motor Co Business Description

Ford Motor Co logo
Address
One American Road, Dearborn, MI, USA, 48126
Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. In March 2022 the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all under Ford Motor Company. The company has about 12.5% market share in the United States, about 6.5% share in Europe, and about 2.4% share in China including unconsolidated affiliates. We expect market share increases as inventory improves coming out of the chip shortage. Sales in the U.S. made up about 64% of 2021 total company revenue. Ford has about 183,000 employees, including about 56,000 UAW employees, and is based in Dearborn, Michigan.
Executives
Waldo Jennifer officer: Chief People & E. Exp. Officer ONE AMERICAN ROAD DEARBORN MI 48126
Gjaja Marin officer: Chief Cust. Off., Ford Model e ONE AMERICAN ROAD DEARBORN MI 48126
Cannis Theodore J. officer: CEO of Ford Pro ONE AMERICAN ROAD DEARBORN MI 48126
May John C Ii director DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Amend Michael officer: Chief Digital & Info. Officer ONE AMERICAN ROAD DEARBORN MI 48126
Field John Douglas officer: Chief AT&ES Officer ONE AMERICAN ROAD DEARBORN MI 48126
Croley Steven P. officer: Chief Policy Ofcr, Gen Counsel ONE AMERICAN ROAD DEARBORN MI 48126
English Alexandra Ford director ONE AMERICAN ROAD DEARBORN MI 48126
Ford Iii Henry director ONE AMERICAN ROAD DEARBORN MI 48126
Mellen John F officer: General Counsel ONE AMERICAN ROAD DEARBORN MI 48126
Mooney Beth E director 315 DEADERICK STREET NASHVILLE TN 37237
Stone Timothy R officer: Chief Financial Officer ONE AMERICAN ROAD DEARBORN MI 48126
Mcclelland David W. officer: Vice President ONE AMERICAN ROAD DEARBORN MI 48138
Chen Anning officer: Group Vice President ONE AMERICAN ROAD DEARBORN MI 48126
Johnson Gary Alan officer: Group Vice President ONE AMERICAN ROAD DEARBORN MI 48126

Ford Motor Co Headlines

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