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Usana Health Sciences (Usana Health Sciences) Graham Number : $41.80 (As of Dec. 2023)


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What is Usana Health Sciences 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 Usana Health Sciences is $43.70. Usana Health Sciences's graham number for the quarter that ended in Dec. 2023 was $41.80. Therefore, Usana Health Sciences's Price to Graham Number ratio for today is 1.05.

The historical rank and industry rank for Usana Health Sciences's Graham Number or its related term are showing as below:

USNA' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.04   Med: 2.11   Max: 2.87
Current: 1.05

During the past 13 years, the highest Price to Graham Number ratio of Usana Health Sciences was 2.87. The lowest was 1.04. And the median was 2.11.

USNA's Price-to-Graham-Number is ranked better than
58.65% of 1255 companies
in the Consumer Packaged Goods industry
Industry Median: 1.26 vs USNA: 1.05

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


Usana Health Sciences Graham Number Historical Data

The historical data trend for Usana Health Sciences'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.

Usana Health Sciences Graham Number Chart

Usana Health Sciences 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 37.40 49.66 48.03 40.22 41.80

Usana Health Sciences 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 40.22 40.06 40.17 39.27 41.80

Competitive Comparison of Usana Health Sciences's Graham Number

For the Packaged Foods subindustry, Usana Health Sciences'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.


Usana Health Sciences's Price-to-Graham-Number Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Usana Health Sciences's Price-to-Graham-Number falls into.



Usana Health Sciences Graham Number Calculation

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

Usana Health Sciences'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*23.533*3.3)
=41.80

Usana Health Sciences'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*23.533*3.3)
=41.80

* 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.


Usana Health Sciences  (NYSE:USNA) 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.

Usana Health Sciences's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=43.70/41.80
=1.05

* 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.


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.


Usana Health Sciences Graham Number Related Terms

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


Usana Health Sciences (Usana Health Sciences) Business Description

Traded in Other Exchanges
Address
3838 West Parkway Boulevard, Salt Lake City, UT, USA, 84120
Usana Health Sciences Inc is a U.S.-based company that is principally engaged in developing, manufacturing, and selling science-based nutritional and personal-care products. The company operates through direct selling. It owns a number of product lines, such as Essentials, which contains core vitamin and mineral supplements; Optimizers, which includes targeted supplements for individuals' health and nutritional needs; Foods, which consists of low-glycemic meal replacement shakes, snack bars, and other related products; and Sense Beautiful Science, which contains personal-care products related to skin and hair. The company conducts business worldwide, including Asia-Pacific, the Americas, and Europe.
Executives
John Turman Fleming director 3838 WEST PARKWAY BLVD., SALT LAKE CITY UT 84120
Gilbert A Fuller officer: CFO and Executive V.P. 55 WANDERWOOD WAY, SANDY UT 84092
Frederic J Winssinger director 2944 N 44TH STREET, SUITE 250, PHOENIX AZ 85018
David Mulham Mulham officer: Chief Field Development Office 3838 WEST PARKWAY BLVD, SALT LAKE CITY UT 84120
Paul A. Jones officer: CFO 3838 WEST PARKWAY BLVD., SALT LAKE CITY UT 84120
Xia Ding director 3838 WEST PARKWAY BLVD., SALT LAKE CITY UT 84120
Daniel A. Macuga officer: Chief Communications Officer 3838 WEST PARKWAY BLVD., SALT LAKE CITY UT 84120
Jim Brown officer: Chief Production Officer 3838 WEST PARKWAY BLVD., SALT LAKE CITY UT 84120
Brent Neidig officer: CO & Man. Dir. of China 3838 WEST PARKWAY BLVD., WEST VALLEY CITY UT 84120
J Scott Nixon director 757 EAST SOUTH TEMPLE, SUITE 150, SALT LAKE CITY UT 84102
Kevin Guest officer: E.V.P. of Marketing 3838 WEST PARKWAY BLVD, SALT LAKE CITY UT 84120
Joshua Foukas officer: Chief Legal Officer 3838 WEST PARKWAY BLVD., SALT LAKE CITY X1 84120
G Doug Iiekking officer: VP of Finance C/O USANA HEALTH SCIENCES INC, 3838 W PARKWAY BLVD, SALT LAKE CITY UT 84120
Walter Noot officer: Chief Information Officer 3838 WEST PARKWAY BLVD, SALT LAKE CITY UT 84120
Robert A Sinnott officer: Chief Scientific Officer 400 55 WATER STREET, VANCOUVER A1 V6B1A1