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Great-West Lifeco Graham Number

: $22.83 (As of Sep. 2021)
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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 (2021-12-08), the stock price of Great-West Lifeco is $29.99. Great-West Lifeco's graham number for the quarter that ended in Sep. 2021 was $22.83. Therefore, Great-West Lifeco's Price to Graham Number ratio for today is 1.31.

The historical rank and industry rank for Great-West Lifeco's Graham Number or its related term are showing as below:

OTCPK:GWLIF' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.95   Med: 1.95   Max: 6.96
Current: 1.34

0.95
6.96

During the past 13 years, the highest Price to Graham Number ratio of Great-West Lifeco was 6.96. The lowest was 0.95. And the median was 1.95.

OTCPK:GWLIF's Price-to-Graham-Number is ranked lower than
73% of the 404 Companies
in the Insurance industry.

( Industry Median: 0.82 vs. OTCPK:GWLIF: 1.34 )

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


Great-West Lifeco Graham Number Historical Data

The historical data trend for Great-West Lifeco'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.

Great-West Lifeco Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.04 17.38 20.65 18.28 18.01

Great-West Lifeco Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 18.75 17.70 19.72 20.56 22.83

Competitive Comparison

For the Insurance - Life subindustry, Great-West Lifeco'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.

   

Great-West Lifeco Graham Number Distribution

For the Insurance industry and Financial Services sector, Great-West Lifeco's Graham Number distribution charts can be found below:

* The bar in red indicates where Great-West Lifeco's Graham Number falls into.



Great-West Lifeco Graham Number Calculation

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

Great-West Lifeco's Graham Number for the fiscal year that ended in Dec. 2020 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*5.825*2.476)
=18.01

Great-West Lifeco's Graham Number for the quarter that ended in Sep. 2021 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*8.27*2.8)
=22.83

* 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.


Great-West Lifeco  (OTCPK:GWLIF) 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.

Great-West Lifeco's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2021 )
=29.99/22.83
=1.31

* 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.


Great-West Lifeco Graham Number Related Terms

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


Great-West Lifeco Business Description

Great-West Lifeco logo
Industry
Financial Services » Insurance NAICS : 524113 SIC : 7311
Address
100 Osborne Street North, Winnipeg, MB, CAN, R3C 1V3
Great-West Lifeco is one of the three big Canadian life insurance firms. With just under half of the firm's profit and revenue in Canada, Great-West also operates in the U.S. and Europe. In Canada, Great-West provides both individual and group insurance. In the United States, Great-West operates Putnam Investments and defined-contribution recordkeeping firm Empower Retirement. In 2020, Great-West announced it would acquire Personal Capital and MassMutual's recordkeeping business. In Europe, Great-West offers life insurance, annuities, and reinsurance primarily in the U.K., Ireland, and Germany.

Great-West Lifeco Headlines

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