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Safety Insurance Group (NAS:SAFT) Graham Number

: $65.84 (As of Sep. 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 (2023-02-03), the stock price of Safety Insurance Group is $86.88. Safety Insurance Group's graham number for the quarter that ended in Sep. 2022 was $65.84. Therefore, Safety Insurance Group's Price to Graham Number ratio for today is 1.32.

The historical rank and industry rank for Safety Insurance Group's Graham Number or its related term are showing as below:

SAFT' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.19   Med: 0.78   Max: 2.19
Current: 1.32

During the past 13 years, the highest Price to Graham Number ratio of Safety Insurance Group was 2.19. The lowest was 0.19. And the median was 0.78.

SAFT's Price-to-Graham-Number is ranked worse than
66.01% of 356 companies
in the Insurance industry
Industry Median: 0.92 vs SAFT: 1.32

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


Safety Insurance Group Graham Number Historical Data

The historical data trend for Safety Insurance Group'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.

Safety Insurance Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 65.18 75.79 87.40 110.77 111.21

Safety Insurance Group Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 118.65 110.52 94.58 77.77 65.84

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Safety Insurance Group'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.

   

Safety Insurance Group Graham Number Distribution

For the Insurance industry and Financial Services sector, Safety Insurance Group's Graham Number distribution charts can be found below:

* The bar in red indicates where Safety Insurance Group's Graham Number falls in comparison to its industry or sector. The grey bar indicates the Graham Number's extreme value range as defined by GuruFocus.



Safety Insurance Group Graham Number Calculation

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

Safety Insurance Group's Graham Number for the fiscal year that ended in Dec. 2021 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*62.466*8.8)
=111.21

Safety Insurance Group's Graham Number for the quarter that ended in Sep. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*53.222*3.62)
=65.84

* 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.


Safety Insurance Group  (NAS:SAFT) 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.

Safety Insurance Group's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2022 )
=86.88/65.84
=1.32

* 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.


Safety Insurance Group Graham Number Related Terms

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


Safety Insurance Group (NAS:SAFT) Business Description

Safety Insurance Group logo
Traded in Other Exchanges
Address
20 Custom House Street, Boston, MA, USA, 02110
Safety Insurance Group Inc is a provider of private passenger automobile insurance in Massachusetts. The company also offers property and casualty insurance products, including commercial automobile, homeowners, dwelling fire, umbrella, and business owner policies. It operates in the business segment of Property and casualty insurance operations.
Executives
Farina John Daniel Jr. director 20 CUSTOM HOUSE ST, BOSTON MA 02110
Deborah E Gray director 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Glenn Hiltpold officer: VP of Actuarial Services 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Moran Mary Coffey director DANVERS BANCORP, INC., ONE CONANT STREET, DANVERS MA 01923
Christopher Thomas Whitford officer: VP, CFO and Secretary 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Srb Corp 10 percent owner 125 HIGH STREET, OLIVER STREET TOWER, 9TH FLOOR, BOSTON MA 02110
Palisades Safety & Insurance Association 10 percent owner C/O PLYMOUTH ROCK MANAGEMENT CO OF NJ, 581 MAIN STREET, 4TH FLOOR, WOODBRIDGE NJ 07095
Plymouth Rock Co Inc 10 percent owner 695 ATLANTIC AVENUE, BOSTON MA 02111
Thalia Meehan director C/O SAFETY INSURANCE GROUP, INC., 20 CUSTOM HOUSE STREET, BOSTON MA 02110
John Patrick Drago officer: VP - Marketing 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Ann Marie Mckeown officer: V.P Insurance Operations 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Stephen Albert Varga officer: VP - MIS 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Paul J Narciso officer: VP - Claims C/O SAFETY INSURANCE, 20 CUSTOM HOUSE STREET, BOSTON MA 02110
George Murphy officer: VP - Marketing C/O SAFETY INSURANCE GROUP, INC., 20 CUSTOM HOUSE STREET, BOSTON MA 02110
James Berry officer: VP - Insurance Operations C/O SAFETY INSURANCE, 20 CUSTOM HOUSE STREET, BOSTON MA 02110

Safety Insurance Group (NAS:SAFT) Headlines

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