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DTFTax-Freeome (DTFTax-Freeome) Graham Number : $10.83 (As of Oct. 2023)


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What is DTFTax-Freeome 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 (2024-05-11), the stock price of DTFTax-Freeome is $10.905. DTFTax-Freeome's graham number for the quarter that ended in Oct. 2023 was $10.83. Therefore, DTFTax-Freeome's Price to Graham Number ratio for today is 1.01.

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

DTF' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.58   Med: 1.05   Max: 2.09
Current: 1.01

During the past 7 years, the highest Price to Graham Number ratio of DTFTax-Freeome was 2.09. The lowest was 0.58. And the median was 1.05.

DTF's Price-to-Graham-Number is ranked worse than
63.87% of 1132 companies
in the Asset Management industry
Industry Median: 0.77 vs DTF: 1.01

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


DTFTax-Freeome Graham Number Historical Data

The historical data trend for DTFTax-Freeome'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.

DTFTax-Freeome Graham Number Chart

DTFTax-Freeome Annual Data
Trend Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Graham Number
Get a 7-Day Free Trial 24.40 13.59 12.19 - 10.89

DTFTax-Freeome Semi-Annual Data
Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.19 - - - 10.83

Competitive Comparison of DTFTax-Freeome's Graham Number

For the Asset Management subindustry, DTFTax-Freeome'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.


DTFTax-Freeome's Price-to-Graham-Number Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, DTFTax-Freeome's Price-to-Graham-Number distribution charts can be found below:

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



DTFTax-Freeome Graham Number Calculation

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

DTFTax-Freeome's Graham Number for the fiscal year that ended in Oct. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*11.977*0.44)
=10.89

DTFTax-Freeome's Graham Number for the quarter that ended in Oct. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*11.977*0.435)
=10.83

* 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.


DTFTax-Freeome  (NYSE:DTF) 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.

DTFTax-Freeome's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Oct. 2023 )
=10.905/10.83
=1.01

* 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.


DTFTax-Freeome Graham Number Related Terms

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


DTFTax-Freeome (DTFTax-Freeome) Business Description

Traded in Other Exchanges
N/A
Address
200 South Wacker Drive, Suite 1900, Chicago, IL, USA, 60606
DTFTax-Free Income Inc is a diversified, closed-end management investment company. Its investment objective is to provide current income exempt from regular federal income tax consistent with preservation of capital. The fund seeks to achieve its investment objective by investing in a diversified portfolio of investment-grade tax-exempt obligations.
Executives
Grumhaus David D Jr. other: Officer of Investment Adviser 200 S. WACKER DRIVE, SUITE 500, CHICAGO IL 60606
Mareile B. Cusack director DUFF & PHELPS INVESTMENT MANAGEMENT CO., 200 SOUTH WACKER DRIVE, SUITE 500, CHICAGO IL 60640
Timothy P. Riordan officer: Vice President DUFF & PHELPS INVESTMENT MANAGEMENT CO., 200 SOUTH WACKER DRIVE, SUITE 500, CHICAGO IL 60640
Kathleen Hegyi officer: CCO C/O DUFF & PHELPS INVESTMENT MANAGEMENT, 200 SOUTH WACKER DRIVE, CHICAGO IL 60606
Dusty L. Self officer: Vice President VIRTUS INVESTMENT PARTNERS, INC., 301 EAST PINE STREET, SUITE 500, ORLANDO FL 32801
Ronald H. Schwartz officer: Vice President VIRTUS INVESTMENT PARTNERS, INC., 301 EAST PINE STREET, SUITE 500, ORLANDO FL 32801
Wells Fargo & Company/mn 10 percent owner 420 MONTGOMERY STREET, SAN FRANCISCO CA 94163
Jpmorgan Chase Bank, N.a. 10 percent owner 1111 POLARIS PARKWAY, COLUMBUS OH 43240
George W Karpus other: See Explanation of Responses
Karpus Management, Inc. 10 percent owner 183 SULLY'S TRAIL, PITTSFORD NY 14534
Lisa Leonard officer: Vice President GATEWAY CENTER THREE, 1100 MUBERRY STREET, 4TH FLOOR, NEWARK NJ 07102
Timothy M Heaney officer: VP & Chief Investment Officer GATEWAY CENTER THREE, 1100 MUBERRY STREET, 4TH FLOOR, NEWARK NJ 07102
Hoffman Clifford W. Jr. director C/O DUFF & PHELPS INVESTMENT MANAGEMENT, 200 E. WACKER DR., CHICAGO IL 60606
Wells Fargo Bank N A 10 percent owner 101 NORTH PHILLIPS AVENUE, SIOUX FALLS SD 57104
Wells Fargo Municipal Capital Strategies, Llc 10 percent owner 375 PARK AVENUE, NEW YORK NY 10152

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