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EchoStar (NAS:SATS) Graham Number

: $29.87 (As of Mar. 2023)
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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 (2023-06-02), the stock price of EchoStar is $16.45. EchoStar's graham number for the quarter that ended in Mar. 2023 was $29.87. Therefore, EchoStar's Price to Graham Number ratio for today is 0.55.

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

SATS' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.28   Med: 1.19   Max: 10.8
Current: 0.55

During the past 13 years, the highest Price to Graham Number ratio of EchoStar was 10.80. The lowest was 0.28. And the median was 1.19.

SATS's Price-to-Graham-Number is ranked better than
91.34% of 1559 companies
in the Hardware industry
Industry Median: 1.40 vs SATS: 0.55

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


EchoStar Graham Number Historical Data

The historical data trend for EchoStar'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.

EchoStar Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 21.71 36.78

EchoStar Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 24.88 21.66 20.34 36.60 29.87

Competitive Comparison

For the Communication Equipment subindustry, EchoStar'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.

   

EchoStar Graham Number Distribution

For the Hardware industry and Technology sector, EchoStar's Graham Number distribution charts can be found below:

* The bar in red indicates where EchoStar'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.



EchoStar Graham Number Calculation

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

EchoStar's Graham Number for the fiscal year that ended in Dec. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*28.623*2.1)
=36.78

EchoStar's Graham Number for the quarter that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*28.945*1.37)
=29.87

* 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.


EchoStar  (NAS:SATS) 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.

EchoStar's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Mar. 2023 )
=16.45/29.87
=0.55

* 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.


EchoStar Graham Number Related Terms

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


EchoStar (NAS:SATS) Business Description

EchoStar logo
Traded in Other Exchanges
Address
100 Inverness Terrace East, Englewood, CO, USA, 80112-5308
EchoStar Corporation is a provider of broadband technology and video delivery solutions for the home and office. The firm operates in two segments - Hughes, which provides satellite broadband Internet access to North American customers and EchoStar Satellite Services, which uses owned and leased in-orbit satellites to provide services primarily to DISH Network.
Executives
Ergen Two-year December 2022 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Muhammad Ali Butt other: Principal Accounting Officer 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Ergen Two-year June 2022 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Ergen Two-year March 2022 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Hamid Akhavan officer: CEO and President 1226 EARNESTINE ST., MCLEAN VA 22101
William David Wade director 11717 EXPLORATION LANE, GERMANTOWN MD 20876
Ergen Two-year June 2021 Sats Grat 10 percent owner 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Ergen Two-year June 2020 Sats Grat 10 percent owner 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Lisa W. Hershman director PO BOX 1602, SOUTH BEND IN 46634
Anders N Johnson officer: CSO & President - ESS ECHOSTAR CORPORATION, 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Ergen Two-year December 2020 Sats Grat 10 percent owner 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Ergen Two-year December 2019 Sats Grat 10 percent owner 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Ergen Two-year November 2018 Sats Grat 10 percent owner 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112
Jeffrey R Tarr director DIGITALGLOBE, INC., 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Ergen Two Year 2017 Sats Grat 10 percent owner C/O ECHOSTAR CORPORATION, 100 INVERNESS TERRACE EAST, ENGLEWOOD CO 80112

EchoStar (NAS:SATS) Headlines

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