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ICICI Bank Graham Number

: $11.04 (As of Sep. 2021)
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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 (2021-12-06), the stock price of ICICI Bank is $18.30. ICICI Bank's graham number for the quarter that ended in Sep. 2021 was $11.04. Therefore, ICICI Bank's Price to Graham Number ratio for today is 1.66.

The historical rank and industry rank for ICICI Bank's Graham Number or its related term are showing as below:

NYSE:IBN' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.48   Med: 1.44   Max: 2.48
Current: 1.75

0.48
2.48

During the past 13 years, the highest Price to Graham Number ratio of ICICI Bank was 2.48. The lowest was 0.48. And the median was 1.44.

NYSE:IBN's Price-to-Graham-Number is ranked lower than
93% of the 1378 Companies
in the Banks industry.

( Industry Median: 0.73 vs. NYSE:IBN: 1.75 )

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


ICICI Bank Graham Number Historical Data

The historical data trend for ICICI Bank'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.

ICICI Bank Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.33 6.60 4.65 6.69 10.19

ICICI Bank Quarterly Data
Jun16 Sep16 Dec16 Mar17 Sep17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 8.61 8.89 10.10 10.26 11.04

Competitive Comparison

For the Banks - Regional subindustry, ICICI Bank'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.

   

ICICI Bank Graham Number Distribution

For the Banks industry and Financial Services sector, ICICI Bank's Graham Number distribution charts can be found below:

* The bar in red indicates where ICICI Bank's Graham Number falls into.



ICICI Bank Graham Number Calculation

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

ICICI Bank's Graham Number for the fiscal year that ended in Mar. 2021 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*6.258*0.737)
=10.19

ICICI Bank's Graham Number for the quarter that ended in Sep. 2021 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*6.604*0.82)
=11.04

* 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.


ICICI Bank  (NYSE:IBN) 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.

ICICI Bank's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2021 )
=18.30/11.04
=1.66

* 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.


ICICI Bank Graham Number Related Terms

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


ICICI Bank Business Description

ICICI Bank logo
Industry
Financial Services » Banks NAICS : 0 SIC : 0
Address
ICICI Bank Towers, Bandra-Kurla Complex, Mumbai, MH, IND, 400 051
ICICI Bank Ltd provides banking services. The company's operating segment include Retail Banking; Wholesale Banking; Treasury and Other Banking Business. It generates maximum revenue from the Retail Banking segment. Retail Banking segment includes exposures of the Bank, which satisfy the four qualifying criteria of a regulatory retail portfolio as stipulated by RBI guidelines on the Basel III framework as well as includes income from credit cards, debit cards, third party product distribution, and the associated costs. Treasury segment includes the entire investment and derivative portfolio of the Bank. Wholesale Banking segment includes all advances to trusts, partnership firms, companies, and statutory bodies.

ICICI Bank Headlines

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