TFI International (TFI International) Graham Number

: $30.72 (As of Dec. 2023)

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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 (2024-04-19), the stock price of TFI International is $141.65. TFI International's graham number for the quarter that ended in Dec. 2023 was $30.72. Therefore, TFI International's Price to Graham Number ratio for today is 4.61.

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

TFII' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 2.34 Med: 4.35 Max: 8.96
Current: 4.72

During the past 13 years, the highest Price to Graham Number ratio of TFI International was 8.96. The lowest was 2.34. And the median was 4.35.

TFII's Price-to-Graham-Number is ranked worse than
95.07% of 730 companies
in the Transportation industry
Industry Median: 0.98 vs TFII: 4.72

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

TFI International Graham Number Historical Data

The historical data trend for TFI International'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.

TFI International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Graham Number

5.70

25.70

42.62

30.69

TFI International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Graham Number																42.64	41.77	39.01	31.40	30.72

Competitive Comparison

For the Trucking subindustry, TFI International'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.

TFI International Price-to-Graham-Number Distribution

For the Transportation industry and Industrials sector, TFI International's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where TFI International's Price-to-Graham-Number falls into.

TFI International Graham Number Calculation

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

TFI International'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	*	6.775	*	6.18)
=	30.69

TFI International'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	*	6.775	*	6.19)
=	30.72

TFI International (NYSE:TFII) 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.

TFI International's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Dec. 2023 )
	=	141.65	/	30.72
	=	4.61

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.

TFI International Graham Number Related Terms

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

TFI International (TFI International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » TFI International Inc (NYSE:TFII) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

TFII:Canada

Address

8801 Trans-Canada Highway, Suite 500, Saint-Laurent, Montreal, QC, CAN, H4S 1Z6

Website

https://www.tfiintl.com

TFI International Inc is a transportation and logistics company domiciled in Canada. The company organises itself into four segments: package and courier, less-than-truckload, truckload, and logistics. The package and courier segment picks up, transports, and delivers items across North America. The less-than-truckload segment transports smaller loads. The truckload segment transports goods by flatbed trucks, containers, or a more specialised service. The company provides general logistics services through the logistics segment. TFI International derives the majority of revenue domestically, followed by the United States.