GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Decarbonization Plus Acquisition Corp IV (NAS:DCRDU) » Definitions » Graham Number

Decarbonization Plus Acquisition IV (Decarbonization Plus Acquisition IV) Graham Number : $N/A (As of Sep. 2022)


View and export this data going back to 2021. Start your Free Trial

What is Decarbonization Plus Acquisition IV 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 (2024-06-12), the stock price of Decarbonization Plus Acquisition IV is $15.00. Decarbonization Plus Acquisition IV's graham number for the quarter that ended in Sep. 2022 was $N/A. Therefore, Decarbonization Plus Acquisition IV's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for Decarbonization Plus Acquisition IV's Graham Number or its related term are showing as below:

During the past 1 years, the highest Price to Graham Number ratio of Decarbonization Plus Acquisition IV was 2.71. The lowest was 1.92. And the median was 1.92.

DCRDU's Price-to-Graham-Number is not ranked *
in the Diversified Financial Services industry.
Industry Median: 1.79
* Ranked among companies with meaningful Price-to-Graham-Number only.

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


Decarbonization Plus Acquisition IV Graham Number Historical Data

The historical data trend for Decarbonization Plus Acquisition IV'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.

Decarbonization Plus Acquisition IV Graham Number Chart

Decarbonization Plus Acquisition IV Annual Data
Trend Dec21
Graham Number
-

Decarbonization Plus Acquisition IV Quarterly Data
Feb21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Graham Number Get a 7-Day Free Trial - - - - -

Competitive Comparison of Decarbonization Plus Acquisition IV's Graham Number

For the Shell Companies subindustry, Decarbonization Plus Acquisition IV'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.


Decarbonization Plus Acquisition IV's Price-to-Graham-Number Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Decarbonization Plus Acquisition IV's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Decarbonization Plus Acquisition IV's Price-to-Graham-Number falls into.



Decarbonization Plus Acquisition IV Graham Number Calculation

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

Decarbonization Plus Acquisition IV'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**0)
=N/A

Decarbonization Plus Acquisition IV'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**0)
=N/A

* 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.


Decarbonization Plus Acquisition IV  (NAS:DCRDU) 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.

Decarbonization Plus Acquisition IV's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2022 )
=15.00/N/A
=N/A

* 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.


Decarbonization Plus Acquisition IV Graham Number Related Terms

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


Decarbonization Plus Acquisition IV (Decarbonization Plus Acquisition IV) Business Description

Traded in Other Exchanges
N/A
Address
2744 Sand Hill Road, Suite 100, Menlo Park, CA, USA, 94025
Decarbonization Plus Acquisition Corp IV is a blank check company.

Decarbonization Plus Acquisition IV (Decarbonization Plus Acquisition IV) Headlines