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Designer Brands (Designer Brands) Graham Number : $5.82 (As of Jan. 2024)


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What is Designer Brands 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 (2024-05-12), the stock price of Designer Brands is $9.64. Designer Brands's graham number for the quarter that ended in Jan. 2024 was $5.82. Therefore, Designer Brands's Price to Graham Number ratio for today is 1.66.

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

DBI' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.64   Med: 1.19   Max: 3.55
Current: 1.66

During the past 13 years, the highest Price to Graham Number ratio of Designer Brands was 3.55. The lowest was 0.64. And the median was 1.19.

DBI's Price-to-Graham-Number is ranked worse than
66.38% of 690 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.145 vs DBI: 1.66

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


Designer Brands Graham Number Historical Data

The historical data trend for Designer Brands'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.

Designer Brands Graham Number Chart

Designer Brands Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.74 - 13.71 16.22 5.56

Designer Brands Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 14.06 11.04 11.54 8.78 5.82

Competitive Comparison of Designer Brands's Graham Number

For the Footwear & Accessories subindustry, Designer Brands'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.


Designer Brands's Price-to-Graham-Number Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Designer Brands's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Designer Brands's Price-to-Graham-Number falls into.



Designer Brands Graham Number Calculation

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

Designer Brands's Graham Number for the fiscal year that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*2.667*0.515)
=5.56

Designer Brands's Graham Number for the quarter that ended in Jan. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.667*0.565)
=5.82

* 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.


Designer Brands  (NYSE:DBI) 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.

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

Price to Graham number=Share Price (Today)/Graham number (Q: Jan. 2024 )
=9.64/5.82
=1.66

* 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.


Designer Brands Graham Number Related Terms

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


Designer Brands (Designer Brands) Business Description

Traded in Other Exchanges
Address
810 DSW Drive, Columbus, OH, USA, 43219
Designer Brands Inc is a designer, producer and retailer of footwear and accessories. The company operates in three reportable segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment. The U.S. Retail segment operates the DSW Designer Shoe Warehouse banner through its direct-to-consumer U.S. stores and e-commerce site. The Canada Retail segment operates The Shoe Company and DSW banners through its direct-to-consumer Canada stores and e-commerce sites. The Brand Portfolio segment earns revenue from the sale of wholesale products to retailers, commissions for serving retailers as the design and buying agent for products under private labels and the sale of branded products through its direct-to-consumer e-commerce site at www.vincecamuto.com.
Executives
Deborah L Ferree officer: Pres. & Chief Mdsing Officer 4150 EAST FIFTH AVE., COLUMBUS OH 43219
Mark Haley officer: SVP, Controller & PAO 4055 TECHNOLOGY FOREST BLVD., STE. 210, THE WOODLANDS TX 77381
William L Jordan officer: SVP, General Counsel 810 DSW DRIVE, COLUMBUS OH 43219
James S. Weinberg officer: EVP; Chief Merchandising Ofcr 810 DSW DR,, COLUMBUS OH 43219
Jared A. Poff officer: SVP, Finance & Interim CFO DSW INC., 810 DSW DRIVE, COLUMBUS OH 43219
Mary Turner officer: EVP; President, Shoe Company 810 DSW DRIVE, COLUMBUS OH 43219
Harvey L Sonnenberg other: Director Nominee 399 THORNALL STREET, EDISON NJ 08837
Laura Denk officer: EVP;Pres DSW Designer ShoeWhse 810 DSW DRIVE, COLUMBUS OH 43219
Tami Fersko director 810 DSW DRIVE, COLUMBUS OH 43219
Richard A. Paul director 80 PINE STREET, SUITE 3202, NEW YORK NY 10005
Joanne Zaiac director DSW INC., 810 DSW DRIVE, COLUMBUS OH 43219
Joanna T Lau director 30 MONUMENT SQUARE, SUITE 220, CONCORD MA 01742
Douglas M. Howe officer: EVP, President of DSW N56 W17000 RIDGEWOOD DRIVE, MENOMONEE FALLS WI 53051-5660
Jay L Schottenstein director, 10 percent owner, officer: Chairman and CEO 1800 MOLER ROAD, COLUMBUS OH 43207
Joseph A. Schottenstein director 4300 EAST FIFTH AVENUE, COLUMBUS OH 43219