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SCG Decor PCL (BKK:SCGD-F) Graham Number : ฿8.98 (As of Dec. 2023)


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What is SCG Decor PCL Graham Number?

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 (2024-05-16), the stock price of SCG Decor PCL is ฿8.05. SCG Decor PCL's graham number for the quarter that ended in Dec. 2023 was ฿8.98. Therefore, SCG Decor PCL's Price to Graham Number ratio for today is 1.36.

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

BKK:SCGD-F' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.85   Med: 1.18   Max: 1.18
Current: 0.85

During the past 3 years, the highest Price to Graham Number ratio of SCG Decor PCL was 1.18. The lowest was 0.85. And the median was 1.18.

BKK:SCGD-F's Price-to-Graham-Number is ranked better than
59.18% of 294 companies
in the Building Materials industry
Industry Median: 1.095 vs BKK:SCGD-F: 0.85

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


SCG Decor PCL Graham Number Historical Data

The historical data trend for SCG Decor PCL'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.

SCG Decor PCL Graham Number Chart

SCG Decor PCL Annual Data
Trend Dec21 Dec22 Dec23
Graham Number
7.71 6.51 8.48

SCG Decor PCL Quarterly Data
Dec21 Sep22 Dec22 Sep23 Dec23
Graham Number - - - - 8.98

Competitive Comparison of SCG Decor PCL's Graham Number

For the Building Materials subindustry, SCG Decor PCL'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.


SCG Decor PCL's Price-to-Graham-Number Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, SCG Decor PCL's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where SCG Decor PCL's Price-to-Graham-Number falls into.



SCG Decor PCL Graham Number Calculation

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

SCG Decor PCL's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*8.424*0.379)
=8.48

SCG Decor PCL'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*8.424*0.185)
=5.92

* 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.


SCG Decor PCL  (BKK:SCGD-F) 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.

SCG Decor PCL's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=8.05/5.92
=1.36

* 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.


SCG Decor PCL Graham Number Related Terms

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SCG Decor PCL (BKK:SCGD-F) Business Description

Comparable Companies
Traded in Other Exchanges
Address
1 Siam Cement Road, Bang Sue Subdistrict, Bangkok, THA
SCG Decor PCL operates as a holding company in which its subsidiaries and associates operate business as manufacturers of Floor tiles and wall tiles in Thailand and other countries such as Vietnam, It consists of two segments namely Decor Surfaces Business, which derives the maximum revenue and Bathroom Business. Geographically, it generates majority revenue from Thailand.

SCG Decor PCL (BKK:SCGD-F) Headlines

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