GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Tokio Marine Holdings Inc (OTCPK:TKOMY) » Definitions » Graham Number

Tokio Marine Holdings (Tokio Marine Holdings) Graham Number

: $23.43 (As of Dec. 2023)
View and export this data going back to 2007. Start your Free Trial

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 (2024-04-18), the stock price of Tokio Marine Holdings is $29.83. Tokio Marine Holdings's graham number for the quarter that ended in Dec. 2023 was $23.43. Therefore, Tokio Marine Holdings's Price to Graham Number ratio for today is 1.27.

The historical rank and industry rank for Tokio Marine Holdings's Graham Number or its related term are showing as below:

TKOMY' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.67   Med: 0.91   Max: 1.47
Current: 1.38

During the past 13 years, the highest Price to Graham Number ratio of Tokio Marine Holdings was 1.47. The lowest was 0.67. And the median was 0.91.

TKOMY's Price-to-Graham-Number is ranked worse than
73.68% of 399 companies
in the Insurance industry
Industry Median: 0.86 vs TKOMY: 1.38

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


Tokio Marine Holdings Graham Number Historical Data

The historical data trend for Tokio Marine Holdings'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.

Tokio Marine Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.01 16.10 13.96 21.80 16.68

Tokio Marine Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 15.81 16.64 17.21 20.32 23.43

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Tokio Marine Holdings'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.


Tokio Marine Holdings Price-to-Graham-Number Distribution

For the Insurance industry and Financial Services sector, Tokio Marine Holdings's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Tokio Marine Holdings's Price-to-Graham-Number falls into.



Tokio Marine Holdings Graham Number Calculation

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

Tokio Marine Holdings's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*9.263*1.335)
=16.68

Tokio Marine Holdings'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*11.272*2.165)
=23.43

* 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.


Tokio Marine Holdings  (OTCPK:TKOMY) 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.

Tokio Marine Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=29.83/23.43
=1.27

* 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.


Tokio Marine Holdings Graham Number Related Terms

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


Tokio Marine Holdings (Tokio Marine Holdings) Business Description

Traded in Other Exchanges
Address
Tokio Marine Nichido Building Shinkan, 2-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, JPN, 100-0005
Dating back to 1879, Tokio Marine is Japan's oldest insurance company and was its top property and casualty insurer in terms of market share for many decades. After mergers of its smaller rivals in the past few years, the company is now roughly the same size in the domestic nonlife market as MS&AD and Sompo Holdings, but it remains the most valuable listed Japanese insurer in terms of market capitalization due to its larger overseas business portfolio. The majority of its overseas business is in the U.S., where it has purchased four specialty insurers since 2008: Philadelphia Consolidated, Delphi Financial, HCC, and PURE. It is a member of the Mitsubishi keiretsu group and holds minority stakes in a number of group companies that also rank among its shareholders.

Tokio Marine Holdings (Tokio Marine Holdings) Headlines

From GuruFocus

Matthews Japan Fund Comments on Tokio Marine Holdings

By Sydnee Gatewood Sydnee Gatewood 07-30-2020

Top 5 Trades of the Matthews Japan Fund

By Sydnee Gatewood 08-04-2022