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Compagnie Financiere Richemont Graham Number

: $50.19 (As of Mar. 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 (2022-08-09), the stock price of Compagnie Financiere Richemont is $121.012. Compagnie Financiere Richemont's graham number for the quarter that ended in Mar. 2022 was $50.19. Therefore, Compagnie Financiere Richemont's Price to Graham Number ratio for today is 2.41.

The historical rank and industry rank for Compagnie Financiere Richemont's Graham Number or its related term are showing as below:

CFRHF' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.5   Med: 1.6   Max: 2.58
Current: 2.5

During the past 13 years, the highest Price to Graham Number ratio of Compagnie Financiere Richemont was 2.58. The lowest was 0.50. And the median was 1.60.

CFRHF's Price-to-Graham-Number is ranked worse than
77.04% of 723 companies
in the Retail - Cyclical industry
Industry Median: 1.20 vs CFRHF: 2.50

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


Compagnie Financiere Richemont Graham Number Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 42.73 52.12 29.74 39.21 49.19

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
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 29.69 15.02 39.19 53.19 50.19

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Graham Number Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Graham Number distribution charts can be found below:

* The bar in red indicates where Compagnie Financiere Richemont's Graham Number falls into.



Compagnie Financiere Richemont Graham Number Calculation

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

Compagnie Financiere Richemont's Graham Number for the fiscal year that ended in Mar. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*27.044*3.977)
=49.19

Compagnie Financiere Richemont's Graham Number for the quarter that ended in Mar. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*27.044*4.139)
=50.19

* 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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.

Compagnie Financiere Richemont's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2022 )
=121.012/50.19
=2.41

* 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.


Compagnie Financiere Richemont Graham Number Related Terms

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Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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