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 (2024-05-17), the stock price of Clearwire is €3.88. Clearwire's graham number for the quarter that ended in Mar. 2013 was €N/A. Therefore, Clearwire's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for Clearwire's Graham Number or its related term are showing as below:
FRA:CBV's Price-to-Graham-Number is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.49 * 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.
Clearwire Graham Number Historical Data
The historical data trend for Clearwire'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.
Competitive Comparison of Clearwire's Graham Number
For the Telecom Services subindustry, Clearwire'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.
Clearwire's Price-to-Graham-Number Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Clearwire's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Clearwire's Price-to-Graham-Number falls into.
Clearwire Graham Number Calculation
Graham Number is a concept based on Ben Graham's conservative valuation of companies.
Clearwire's Graham Number for the fiscal year that ended in Dec. 2012 is calculated as
* 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.
Clearwire (FRA:CBV) 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.
Clearwire's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2013 )
=
3.88
/
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.
Clearwire Graham Number Related Terms
Thank you for viewing the detailed overview of Clearwire's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.
Clearwire Corp builds wireless networks intended primarily to provide Internet access to consumers and businesses. The firm was formed in 2008 via the merger of 'Old' Clearwire, a firm founded in 2003 to build wireless networks and certain assets from Sprint Nextel. These assets included wireless spectrum and network equipment that Sprint had intended for use in building wireless networks based on WiMAX, a fairly new wireless standard designed to offer data, rather than phone, services. At the time of Clearwire's creation, it received approx $3.2 billion investment from a group of investors that includes cable companies Comcast, Time Warner Cable, and Bright House Networks and technology firms Google and Intel. These funds will be used to finance network expansion. Sprint owns more than half of Clearwire via its interest in a subsidiary that holds all of Clearwire's assets. Intel is the firm's second largest shareholder, with a 13% stake. Clearwire's networks currently cover territories with a combined population of about 20 million people. Most of these networks were built by the original Clearwire using a pre-standards version of WiMAX technology. All current construction is entirely WiMAX based and Clearwire plans to upgrade older networks to WiMAX over the next two years. The firm owns wireless spectrum capable of covering most of the U.S. population and networks currently under construction will allow it to serve about 75 million people. Clearwire is in the initial stages of building networks covering an addition 45 million people. Wireless services are provided using a wireless modem or PC card, which customers can either buy or lease from the company. Clearwire's Internet access service offers download speeds of up to 2 megabits per second (Mbps) in markets with older technology and 4 Mbps in areas served with WiMAX. The firm markets its service directly to customers and will also resell services through Sprint and its cable investors. Clearwire competes with phone and cable companies for Internet access customers. It also competes with wireless carriers that offer data services over their existing networks. Both AT&T and Verizon Wireless, the two largest carriers in the U.S., have announced plans to deploy networks based on LTE, an alternative next-generation wireless standard that is still in development.
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