Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Graham Number : $66.77 (As of Dec. 2023)

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What is Granite Real Estate Investment Trust 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 Granite Real Estate Investment Trust is $50.31. Granite Real Estate Investment Trust's graham number for the quarter that ended in Dec. 2023 was $66.77. Therefore, Granite Real Estate Investment Trust's Price to Graham Number ratio for today is 0.75.

The historical rank and industry rank for Granite Real Estate Investment Trust's Graham Number or its related term are showing as below:

GRP.U' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.71 Med: 0.88 Max: 1.37
Current: 0.77

During the past 13 years, the highest Price to Graham Number ratio of Granite Real Estate Investment Trust was 1.37. The lowest was 0.71. And the median was 0.88.

GRP.U's Price-to-Graham-Number is ranked better than
51.37% of 586 companies
in the REITs industry
Industry Median: 0.78 vs GRP.U: 0.77

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

Granite Real Estate Investment Trust Graham Number Historical Data

The historical data trend for Granite Real Estate Investment Trust'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.

Granite Real Estate Investment Trust Graham Number Chart

Granite Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Graham Number

Get a 7-Day Free Trial

47.93

52.46

60.08

71.30

64.38

Granite Real Estate Investment Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Graham Number	Get a 7-Day Free Trial															61.67	59.71	62.84	65.31	66.77

Competitive Comparison of Granite Real Estate Investment Trust's Graham Number

For the REIT - Industrial subindustry, Granite Real Estate Investment Trust'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.

Granite Real Estate Investment Trust's Price-to-Graham-Number Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Granite Real Estate Investment Trust's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Granite Real Estate Investment Trust's Price-to-Graham-Number falls into.

Granite Real Estate Investment Trust Graham Number Calculation

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

Granite Real Estate Investment Trust'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	*	62.083	*	2.967)
=	64.38

Granite Real Estate Investment Trust's Graham Number for the quarter that ended in Dec. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	62.083	*	3.192)
=	66.77

Granite Real Estate Investment Trust (NYSE:GRP.U) 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.

Granite Real Estate Investment Trust's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Dec. 2023 )
	=	50.31	/	66.77
	=	0.75

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.

Granite Real Estate Investment Trust Graham Number Related Terms

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Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Granite Real Estate Investment Trust (NYSE:GRP.U) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

4I7:Germany GRT.UN:Canada

Address

77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, ON, CAN, M5K 1H1

Website

https://www.granitereit.com

Granite Real Estate Investment Trust, or Granite, is a real estate investment trust engaged in the acquisition, development, ownership and management of of logistics, warehouse and industrial properties in North America and Europe. Granite's portfolio comprises various manufacturing, corporate office, warehouse and logistics, and product engineering facilities. The vast majority of the company's assets are logistics and distribution warehouses and multipurpose buildings split fairly evenly amongst Canadian, Austrian, and U.S. locations. Granite derives nearly all of its revenue in the form of rental income from its properties. The company's tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income.