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Royce Value Trust Graham Number

: $N/A (As of Jun. 2020)
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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 (2020-10-25), the stock price of Royce Value Trust is $13.56. Royce Value Trust's graham number for the quarter that ended in Jun. 2020 was $N/A. Therefore, Royce Value Trust's Price to Graham Number ratio for today is N/A.

NYSE:RVT' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.38   Med: 0.38   Max: 0.52
Current: 0.52

0.38
0.52

During the past 3 years, the highest Price to Graham Number ratio of Royce Value Trust was 0.52. The lowest was 0.38. And the median was 0.38.

NYSE:RVT's Price-to-Graham-Number is ranked lower than
99.99% of the 738 Companies
in the Asset Management industry.

( Industry Median: 0.99 vs. NYSE:RVT: 0.52 )

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


Royce Value Trust Graham Number Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Royce Value Trust Annual Data
Dec17 Dec18 Dec19
Graham Number 33.43 0.00 26.05

Royce Value Trust Semi-Annual Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20
Graham Number Premium Member Only 0.00 0.00 0.00 38.61 0.00

Competitive Comparison
* 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.


Royce Value Trust Graham Number Distribution

* The bar in red indicates where Royce Value Trust's Graham Number falls into.



Royce Value Trust Graham Number Calculation

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

Royce Value Trust's Graham Number for the fiscal year that ended in Dec. 2019 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*16.576*1.82)
=26.05

Royce Value Trust's Graham Number for the quarter that ended in Jun. 2020 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*14.333*-0.30361)
=N/A

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Royce Value Trust  (NYSE:RVT) 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.

Royce Value Trust's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2020 )
=13.56/N/A
=N/A

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Royce Value Trust Graham Number Related Terms


Royce Value Trust Graham Number Headlines

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