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Nu Skin Enterprises (Nu Skin Enterprises) Graham Number : $11.05 (As of Dec. 2023)


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What is Nu Skin Enterprises 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 (2024-04-25), the stock price of Nu Skin Enterprises is $12.47. Nu Skin Enterprises's graham number for the quarter that ended in Dec. 2023 was $11.05. Therefore, Nu Skin Enterprises's Price to Graham Number ratio for today is 1.13.

The historical rank and industry rank for Nu Skin Enterprises's Graham Number or its related term are showing as below:

NUS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.62   Med: 1.59   Max: 2.97
Current: 0.62

During the past 13 years, the highest Price to Graham Number ratio of Nu Skin Enterprises was 2.97. The lowest was 0.62. And the median was 1.59.

NUS's Price-to-Graham-Number is ranked better than
56.2% of 1258 companies
in the Consumer Packaged Goods industry
Industry Median: 1.26 vs NUS: 0.62

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


Nu Skin Enterprises Graham Number Historical Data

The historical data trend for Nu Skin Enterprises'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.

Nu Skin Enterprises Graham Number Chart

Nu Skin Enterprises Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.40 31.07 31.51 28.33 20.21

Nu Skin Enterprises 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 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 25.74 23.44 21.34 15.38 11.05

Competitive Comparison of Nu Skin Enterprises's Graham Number

For the Household & Personal Products subindustry, Nu Skin Enterprises'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.


Nu Skin Enterprises's Price-to-Graham-Number Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nu Skin Enterprises's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Nu Skin Enterprises's Price-to-Graham-Number falls into.



Nu Skin Enterprises Graham Number Calculation

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

Nu Skin Enterprises'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*9.816*1.85)
=20.21

Nu Skin Enterprises'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*9.816*0.553)
=11.05

* 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.


Nu Skin Enterprises  (NYSE:NUS) 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.

Nu Skin Enterprises's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=12.47/11.05
=1.13

* 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.


Nu Skin Enterprises Graham Number Related Terms

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


Nu Skin Enterprises (Nu Skin Enterprises) Business Description

Traded in Other Exchanges
Address
75 West Center Street, Provo, UT, USA, 84601
Nu Skin Enterprises Inc is a health and beauty direct-selling company with a comprehensive product line: anti-aging skin products; peels, masks, and scrubs; moisturizers; body care; hair care; men's care; oral care; sun protection; and cosmetics. The company has three main product divisions: anti-aging, skin, and pharmaceuticals. The pharmaceuticals division offers nutritionals, weight-management products, and food supplements. The company has operations internationally, in more than 50 countries across the Americas, Europe, and the Asia-Pacific.
Executives
Andrew D Lipman director NU SKIN ENTERPRISES INC, 75 WEST CENTER, PROVO UT 84601
Laura Nathanson director C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Emma S. Battle director 101 NORTH CHERRY STREET, SUITE 501, WINSTON SALEM NC 27101
Edwina D Woodbury director
Steven Keith Hatchett officer: SVP, Global Products C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Mark H Lawrence officer: Chief Financial Officer 75 WEST CENTER STREET, PROVO X1 84601
Joseph Y Chang officer: President-Pharmanex Division NU SKIN ENTERPRISES INC, 75 WEST CENTER, PROVO UT 84601
Ryan S Napierski officer: Pres Global Sales & Operations C/O NU SKIN ENTERPRISES INC, 75 WEST CENTER STREEET, PROVO UT 84601
James D Thomas officer: Chief Accounting Officer C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Steven Lund director NU SKIN ENTERPRISES INC, 75 WEST CENTER STREET, PROVO UT 84601
Jeffrey Clark Bettinger officer: SVP, People and Places Officer C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Chayce David Clark officer: EVP and General Counsel C/O NU SKIN ENTERPRISES, INC., 75 W CENTER STREET, PROVO UT 84601
D Matthew Dorny officer: Vice President, other: General Counsel C/O NU SKIN ENTERPRISES, 75 W CENTER ST, PROVO UT 84601
Tang Connie Mang Yee officer: EVP Chief Global Growth &, Customer Experience Officer C/O NU SKIN ENTERPRISES, INC., 75 W CENTER STREET, PROVO UT 84601
Daniel W Campbell director NU SKIN ENTERPRISES INC, 75 WEST CENTER, PROVO UT 84601