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Korn Ferry Graham Number

: $41.16 (As of Jan. 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 (2022-05-25), the stock price of Korn Ferry is $58.50. Korn Ferry's graham number for the quarter that ended in Jan. 2022 was $41.16. Therefore, Korn Ferry's Price to Graham Number ratio for today is 1.42.

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

KFY' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.9   Med: 1.74   Max: 5.94
Current: 1.42

During the past 13 years, the highest Price to Graham Number ratio of Korn Ferry was 5.94. The lowest was 0.90. And the median was 1.74.

KFY's Price-to-Graham-Number is ranked worse than
52.25% of 645 companies
in the Business Services industry
Industry Median: 1.34 vs KFY: 1.42

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


Korn Ferry Graham Number Historical Data

The historical data trend for Korn Ferry'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.

Korn Ferry Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.96 20.04 20.45 19.72 23.73

Korn Ferry Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22
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 14.21 23.67 34.21 39.51 41.16

Competitive Comparison

For the Staffing & Employment Services subindustry, Korn Ferry'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.

   

Korn Ferry Graham Number Distribution

For the Business Services industry and Industrials sector, Korn Ferry's Graham Number distribution charts can be found below:

* The bar in red indicates where Korn Ferry's Graham Number falls into.



Korn Ferry Graham Number Calculation

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

Korn Ferry's Graham Number for the fiscal year that ended in Apr. 2021 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*11.975*2.09)
=23.73

Korn Ferry's Graham Number for the quarter that ended in Jan. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*13.689*5.5)
=41.16

* 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.


Korn Ferry  (NYSE:KFY) 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.

Korn Ferry's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jan. 2022 )
=58.50/41.16
=1.42

* 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.


Korn Ferry Graham Number Related Terms

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


Korn Ferry Business Description

Korn Ferry logo
Industry
Industrials » Business Services NAICS : 561311 SIC : 7361
Traded in Other Exchanges
Address
1900 Avenue of the Stars, Suite 2600, Los Angeles, CA, USA, 90067
Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The largest of its revenue segments is its advisory segment, which provides consulting services related to organizational structure. The executive search segment provides executive-level talent sourcing. The recruitment process outsourcing and professional search segment provide broad-level talent sourcing and digital segment. The company has operations in North America, Asia-Pacific, Latin America, and other regions.
Executives
Burnison Gary D director, officer: CEO C/O KORN FERRY INTERNATIONAL 800 CENTURY PARK EAST STE 900 LOS ANGELES CA 90067
Gold Christina A director C/O ITT CORPORATION 1133 WESTCHESTER AVENUE WHITE PLAINS NY 10604
Martinez Angel R director C/O TUPPERWARE BRANDS CORP PO BOX 2353 ORLANDO FL 32802-2353
Beneby Doyle N director C/O KORN FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Shaheen George T director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHAHEEN GEORGE T a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Perry Debra J director 515 RIDGEWOOD AVENUE GLEN RIDGE NJ 07028
Leamon Jerry director C/O KORN/FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Robinson Lori Jean director 5875 LANDERBROOK DRIVE SUITE 220 CLEVELAND OH 44124
Rozek Robert P officer: EVP, CFO & CCO 343 STATE STREET ROCHESTER NY 146500211
Mulrooney Byrne K officer: CEO-RPO, Pro. Srch. & Dig. 2050 SPECTRUM BOULEVARD FT. LAUDERDALE FL 33309
Arian Mark officer: CEO of Advisory C/O KORN/FERRY INTERNATIONAL 1900 AVE. OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Lauer Len J director 2001 EDMUND HALLEY DRIVE RESTON VA 20191
Floyd William R director ONE THOUSAND BEVERLY WAY FORT SMITH AR 72919
Kaye Stephen D officer: CEO of Hay Group C/O KORN FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Hg (bermuda) Ltd 10 percent owner SE PEARMAN BUILDING, 3RD FLOOR 9 PAR-LA-VILLE ROAD HAMILTON D0 HM 08

Korn Ferry Headlines

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