GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alumil Rom Industry SA (BSE:ALU) » Definitions » Graham Number

Alumil Rom Industry (BSE:ALU) Graham Number : lei2.59 (As of Sep. 2023)


View and export this data going back to 2007. Start your Free Trial

What is Alumil Rom Industry 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 (2024-05-21), the stock price of Alumil Rom Industry is lei2.94. Alumil Rom Industry's graham number for the quarter that ended in Sep. 2023 was lei2.59. Therefore, Alumil Rom Industry's Price to Graham Number ratio for today is 1.13.

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

BSE:ALU' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.23   Med: 0.49   Max: 1.48
Current: 1.14

During the past 13 years, the highest Price to Graham Number ratio of Alumil Rom Industry was 1.48. The lowest was 0.23. And the median was 0.49.

BSE:ALU's Price-to-Graham-Number is ranked better than
53.72% of 484 companies
in the Metals & Mining industry
Industry Median: 1.2 vs BSE:ALU: 1.14

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


Alumil Rom Industry Graham Number Historical Data

The historical data trend for Alumil Rom Industry'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.

Alumil Rom Industry Graham Number Chart

Alumil Rom Industry Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.75 1.65 1.98 2.79 2.91

Alumil Rom Industry Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Graham Number Get a 7-Day Free Trial 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 2.99 2.93 2.87 2.72 2.59

Competitive Comparison of Alumil Rom Industry's Graham Number

For the Aluminum subindustry, Alumil Rom Industry'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.


Alumil Rom Industry's Price-to-Graham-Number Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alumil Rom Industry's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Alumil Rom Industry's Price-to-Graham-Number falls into.



Alumil Rom Industry Graham Number Calculation

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

Alumil Rom Industry'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*1.837*0.205)
=2.91

Alumil Rom Industry's Graham Number for the quarter that ended in Sep. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*1.786*0.167)
=2.59

* 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.


Alumil Rom Industry  (BSE:ALU) 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.

Alumil Rom Industry's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2023 )
=2.94/2.59
=1.13

* 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.


Alumil Rom Industry Graham Number Related Terms

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


Alumil Rom Industry (BSE:ALU) Business Description

Traded in Other Exchanges
N/A
Address
Soseaua Bucuresti Ploiesti No. 42-44, Sector 1, Complex Baneasa Business & Technologiy Park, Bucharest, ROU, 50912
Alumil Rom Industry SA is a Romania-based company. The company mainly manufactures and trades a range of Aluminum profile systems such as sliding, opening, and partitioning systems and accessories related to these systems, machine tools, and specific tools used for aluminum joinery, interior doors, and decorative Aluminum panels. The company also engages in the processing of profiles through the provision of thermal breaks and electrostatic painting. The product categories of the company are profiles, accessories, polycarbonates, composite aluminum panels, photovoltaic systems, systems for automation applications, waste, services and others.

Alumil Rom Industry (BSE:ALU) Headlines

From GuruFocus

Kyle Bass Buys Alcatel, Monster, Yahoo, Tellabs, Sells MGIC

By GuruFocus GuruFocus 05-15-2012

Alcatel-Lucent's New Products Can Lead to Long-Term Growth

By starskyinvestments starskyinvestments 09-24-2014

Why Alcatel-Lucent is Ripe for A Turnaround

By Juhi Kulkarni JuhiKulkarni 07-22-2014

Alcatel-Lucent: Buy the Drop

By Juhi Kulkarni Juhi Kulkarni 09-25-2014

Alcatel-Lucent's Turnaround is Gathering Speed

By Juhi Kulkarni JuhiKulkarni 12-11-2014

Top Picks in the Power Smart Sector

By aiseria aiseria 08-13-2015

Alcatel-Lucent's Steady Rise Will Continue

By techjunk13 techjunk13 04-24-2015

Alcatel-Lucent: Strategic Moves Will Result in Growth

By RHPanalysts RHPanalysts 04-27-2015

3 Networking Companies for Your Portfolio

By jaggom jaggom 04-28-2014

Why You Should Buy Alcatel-Lucent's Turnaround

By sandyinvestment sandyinvestment 07-16-2014